LONDON, Nov 19 — The dollar was on track for a fourth straight week of gains against major rival currencies today, as traders wager on interest rates rising faster in the United States amid surging inflation around the world.
Lagarde doubled down on her position on Friday, saying the ECB should not tighten policy as it could choke off recovery. The euro was last down 0.5 per cent on the day at US$1.13195 . The dollar was up 0.4 per cent on the day at 95.899, close to the 16-month high of 96.266 hit on Wednesday.“We think a combination of Fed tapering and slowing global growth should favour the US dollar in 2022,” analysts at UBS said in an outlook report.
“Previous post-GFC occasions when the euro traded below US$1.10 were accompanied by a big euro short position,” said Societe Generale strategist Kit Juckes.