The US dollar hit a two-year high against world currencies, hitting its highest level since November 2022. The Financial Times reports this.

Dollar hits two-year highs against world currencies
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This jump occurred after the publication on Friday, January 10, of employment data in the United States. According to their data, 256 thousand jobs were created in December. This was well above analysts’ forecasts and “cast doubt on the need for further Fed rate cuts this year,” said Lee Hardman, senior currency strategist at MUFG.

The euro fell 0.5% against the dollar to $1.02, approaching parity with the US currency for the first time in more than two years. Philip Lane, chief economist at the European Central Bank, warned that eurozone inflation could miss its 2% target unless the region continues to cut interest rates.

Sterling fell 0.8% to $1.211, hitting a 14-month low and the worst among G10 currencies.

Asia-Pacific markets also recorded declines in stock markets, reflecting concerns about the growing economic power of the United States. Australia’s S&P/ASX 200 fell 1.2%, South Korea’s Kospi fell 1% and India’s Sensex lost 1.4%. Japanese markets were closed on Monday.

However, Andrew Peace, chief investment strategist at Russell Investments, said investors “risk getting too carried away with the theme of American exceptionalism.” “Despite strong employment numbers, wages continue to fall, putting downward pressure on inflation, and political uncertainty remains high,” he added.

Author:

Anastasia Lipchanskaya

Source: RB

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I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.

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