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    Foreign Exchange

    Date: June 17, 2021

    The dollar rose in early European trade Thursday, climbing to levels not seen for around two months after the Federal Reserve surprised markets with a hawkish turn, bringing forward its timetable for raising interest rates to 2023.

     

    The Dollar Index, which tracks the greenback against a basket of six other currencies, was traded 0.2% higher at 91.418, after surging nearly 1% overnight, its biggest rise since March of last year.

     

    The only major currency to withstand the dollar’s advance was the New Zealand dollar, with NZD/USD up 0.4% to 0.7076 after the country’s gross domestic product surged 1.6% in the first quarter from the previous quarter.

     

    Elsewhere, USD/BRL was largely unchanged at 5.0556 following Wednesday’s decision by Brazil’s central bank to raise its benchmark interest rate by 75 basis points to 4.25%, as previously guided, as it struggles to cope with rampant inflation.

     

    The AUD/USD pair was up 0.22 % to 0.7627. Australian employment data for May released earlier in the day was better than expected, with the employment change at 115,200. The unemployment rate fell to 5.1%.

     

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