The dollar has risen to boost energy concerns

ছবি Photo from Reuters file: This photo, taken on February 12, 2018, shows US dollar notes.

By Tom Westbrook

SINGAPORE (Reuters) – Rising fuel prices could push up inflation and interest rates, and the dollar rose on Wednesday as traders waited for US job data on the time when the Federal Reserve will tighten policy.

The Reserve Bank of New Zealand has lifted its official cash rate for the first time in seven years but its resilient nature has only added to the expectation that the Fed will follow suit and US output will decline as it rises.

The Kiwi last weakened 0.4% to 69 0.6928 and the Australian dollar fell to 7 0.7265 by the same margin.

The euro was pinned below 16 1.16 and last bought at 15 1.1589, which is much higher than last week’s মাসের 1.1563 14-month low.

The yen fell to a one-week low of 1 111.72 as Treasury yields rose, which could pull investment flows from Japan. It was in the 18-month trophy of 112.08 visited last Thursday.

Greenback has won support as investors prepare the Fed to cut asset purchases this year and lay the groundwork for the central banks of Europe and Japan to come out of the epidemic-era interest rate settings.

“Differences in interest rates have been affecting the currency for some time,” said Kim Mundi, an analyst at the Commonwealth Bank of Australia (OTC) in Sydney. Begins to end.

“Now that the Fed has started to decline and is looking to exit, we think we can set a market price for the rate hike that will help support the USD,” he added.

Fed Funds futures markets are set to start trading in November 2022, but the rate is expected to rise above 1% for most of 2025, although Fed members’ project rate reached 1.755% in 202.

Long-term U.S. yields rose 0.1% on Wednesday to 94,082. [US/]

U.S. non-farm payrolls data are considered important to inform the Fed’s tone and timing on Friday, especially if the figures are wildly affected or disappointing. Personal pay-based statistics, sometimes unreliable guides, due to around 1215 GMT.

A big miss of market expectations for about 428,000 jobs in September could dampen expectations of a larger figure on Friday, forecasting 473,000.

Dollars in charge

Fear of a high energy price pulling in the direction of rising or moving towards greater inflation supported the currency that was associated with the product.

The Canadian dollar has weakened from a one-month high and the Norwegian crown has slipped from a three-month high.

Sterling has recovered some sharp sell-offs against the dollar last week but has lost momentum through the Asia session and is stable at $ 1.3616 and the euro’s three-week high on Tuesday.

New Zealand has done little to support the 25 basis point rate hike and the central bank’s familiar hawk currency, despite expectations of further increases in November and February.

Jason Wang, Senior Market Strategist at BNZ, Wellington, said:

For the Kiwis, that means “the US dollar is in charge,” he said.

“It’s about the Fed, really, but globally what we’re seeing in China and the energy crisis we’re seeing in Europe all feed into the mix and everything worries the market that adds support for the dollar.”

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