top of page
Long-time Chief Executive Officer Ben Silbermann of Pinterest would step down, handing over the reins of the social media platform to Google...

Stock Market

Google executive to take over as a new CEO of Pinterest

Top accounting firm Ernst & Young has been slammed with a record $100 million fine from the US government...

Stock Market

Accounting firm gets 100 million fine for faulty regulations

The Indian rupee slipped into a fresh low today and extended losses against the US dollar.

Forex

The rupee tumbled to a new low against the dollar in the midst of an increase in crude oil price

Wall Street saw a sharp fall at its closing in a broad sell-off. Consumers' worries over recession have sparked up...

Stock Market

Wall Street Lose Balance after recession strikes growth fear among consumers’

Soaring inflation may be pushing the US economy into a deep recession. Last week's 0.75% interest rate hike by the Federal Reserve...

Stock Market

Inflation ringing the recession bell - Mohammed Shaheen

Stock Market

6 Dec 2021

Omicron Insecurity Spurs Dollar Growth

The Index Today

The Index Today — Monday morning witnessed an upswing in dollar value as prompted by the Omicron variant of the coronavirus with inflation ranks expected to rise steadily, putting more pressure on interest rates.
By 11:28 PM ET (4:28 AM GMT), the U.S. Dollar Index rose from 0.16% to 96.270.

The USD/JPY pair also experienced an increase from 0.17% to 113.

As informed by the policy decision of the Reserve Bank of Australia, the AUD/USD pair saw a boost from 0.30% to 0.7022.

The USD/CNY pair suffered a decrease from 0.11% to 6.3689, as the GBP/USD pair grew from 0.03% to 1.3236.

Despite risks, the Australian and New Zealand currencies pulled through with the help of South African reports that noted comparatively milder symptoms among patients for the Omicron variant of the novel coronavirus.

Nonetheless, analysts from ANZ Bank laid more emphasis on the significance of volatility. “Perhaps, we should be looking for volatility rather than a trend,” they said.

The treasury markets have also recently witnessed a significant rate of volatility compounded by the acute flattening of the U.S yield curve, against the hopes of inflation control by the Federal Reserve, thereby affecting long-term economic progress.

Despite the decline, interest rates future markets have predicted an increase in mid-2022. However, investors remain uncertain as the hike rate would reach a high of 1.5% only by the end of 2026, and is also subject to change.

Chris Weston, the Head of Research at Pepperstone, commented, "This is a tough one to reconcile. It suggests the market sees the Fed stopping hiking after five hikes, well short of the Fed's median forecasts."
Still, an annual inflation rate of over 7% in contrast to the predicted rate of 6.7%, has the potential to alter the market scenario. Weston contends that an “inflation with a 7 as the big number would get the dollar higher.”

Clay pottery with table linens
bottom of page