6 Apr 2022
Dollar Rises amid Hawkish Fed while Euro Plummets
The Index Today
On Wednesday, the U.S. dollar edged higher, spurred by anticipation of a more aggressive U.S. Federal Reserve-sanctioned monetary policy tightening, while the euro tumbled due to the possibility of additional sanctions being levied against Russia.
According to Investing.com, the Dollar Index climbed by 0.2% to 99.640 by 3:00am ET. The EUR/USD pair plunged to its lowest level in about a month by 0.2% to 1.0884.
Fed Governor Lael Brainard’s comments anticipating a “more neutral” monetary policy later this year spurred by the balance sheet trim coupled with upcoming interest rate hikes. At a Minneapolis Federal Reserve conference, "I think we can all absolutely agree inflation is too high and bringing inflation down is of paramount importance."
This comes just ahead of the release of the Fed’s March meeting minutes on Wednesday which will offer investors more clarity on the monetary policy outlook, as well as details on the central bank’s plans to trim its $9 trillion balance sheet.