WASHINGTON (dpa-AFX) - The U.S. dollar climbed higher on Monday, scoring fairly strong gains over some of its major counterparts, as investors picked up the safe-haven currency amid rising fears about a possible recession, and aggressive rate hikes by the Federal Reserve.
The dollar has been gaining in strength in recent sessions, riding on remarks from several Federal Reserve officials that the central bank needs to be aggressive with monetary tightening to tame inflation. The focus is now on the Fed's Jackson Hole, Wyoming, symposium, set to take place this week.
Richmond Fed President Thomas Barkin said central bankers were inclined towards faster, front-loaded interest rate increases, even if that meant risking a U.S. economic recession.
Bundesbank President Joachim Nagel told German newspaper Rheinischen Post that inflation in Germany could hit a 70-year high of 10 percent this fall as Russian natural-gas supplies slow.
A recession appears likely next winter but the European Central Bank should continue increasing rates to tame inflation, he added as Russia announced a three-day halt to European gas supplies via the Nord Stream 1 pipeline at the end of this month, exacerbating the region's energy crisis.
The dollar index rose to 109.10 this afternoon, and despite easing to 108.94, remains fairly high up in positive territory with a gain of more than 0.7%.
Against the Euro, the dollar is trading at $0.9945, firming from $1.0040.
The dollar is trading at $1.1768 against Pound Sterling, gaining from $1.1831.
Against the Japanese currency, the dollar is trading at 137.49 yen, up from 136.93 yen on Friday.
The Swiss franc is at 0.9646 a dollar, sliding from 0.9574 a dollar on Friday evening.
The Aussie is flat against the dollar at 0.6879, slightly down from 0.6878.
Against the Loonie, the dollar is stronger, fetching C$1.3054 a unit, as against C$1.2996 a dollar on Friday.
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