London (awp/afp) – The dollar continued its escalation against the vast majority of currencies, including the euro, the pound and the yen, investors retreating towards this “safe haven” while the American government risks budgetary paralysis .
Around 10:50 GMT (12:50 CET), the Dollar Index, which measures the level of the greenback in relation to a basket of currencies, was moving very close to its ten-month high, and gained 0.08% to 106.322 points.
The dollar continued to reach new highs since March against the euro, which lost 0.16% to 1.0555 dollars, and against the British currency, which lost 0.08% to 1.2148 dollars.
Since Tuesday, “fears of a partial shutdown of the American government have pushed the dollar higher thanks to flows towards safe havens,” reported James Harte, analyst at Tickmill.
Because of a political blockage, the United States risks the paralysis of its administration. The 2024 budget must be adopted by Congress before October 1. But without an agreement between Democrats and Republicans, the federal administration will have to stop certain payments.
In a context of risk aversion, investors are turning more readily to the dollar, considered a safer currency, because a cessation of payments by the American government would have repercussions on the markets and in other economies across the world.
The vitality of the American currency in recent days is also due to statements from the American Federal Reserve (Fed), which signaled last week its intention to raise its rates once again before the end of the year, and to keep at high levels.
In addition, the greenback benefits from high US government bond yields: the 10-year bond reached 4.56%, a first in almost 16 years, and the 30-year bond rose to 4. 69%, the highest in more than 11 years.
Matthew Ryan, analyst at Ebury, also notes that although the movements of the euro and the pound “can be largely attributed to the strength of the greenback”, the two currencies are currently suffering from “concerns about the state of both savings.”
At the same time, the yen dug its October lows against the greenback, and lost 0.89% to 149.18 yen per dollar, approaching the symbolic mark of 150 yen per dollar.
The Japanese currency continued to suffer from the Bank of Japan’s (BoJ) desire to continue its ultra-accommodating monetary policy, despite inflation in the country which remains well above its 2% target and the great weakness of the yen. compared to the dollar.
Wednesday price Tuesday price 10:40 a.m. GMT 9:00 p.m. GMT EUR/USD 1.0555 1.0572 EUR/JPY 157.46 157.60 EUR/CHF 0.9680 0.9682 EUR/GBP 0.8688 0.8695 USD/JPY 149 .18 149.07 USD/CHF 0.9171 0.9157 GBP/USD 1.2148 1.2158
ats/jh
2023-09-27 11:25:03
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