The dollar continued to rise, today, Thursday, to reach levels not reached in 24 years against the yen and close to parity with the euro, amid speculation by traders that the Federal Reserve will raise interest rates to combat inflation.

The global economic turmoil pushed the dollar's price to rise sharply as a safe haven for value, with the dollar index, which measures its value against 6 currencies, rising by more than 13% this year.

It rose 0.2 percentage point today to 108.5.

The dollar rose more than 1% against the yen, to over 139 yen to the dollar for the first time since 1998. It rose in the last trading 1.3% to 139.18 yen to the dollar.

The price of the euro fluctuated directly above its parity with the dollar, a day after it fell from this level for the first time in 20 years.

The single currency was down 0.5% on the day and was last down 0.3% to $1.00310.

The euro fell, yesterday, Wednesday, affected by the bleak outlook for the European economy and the possibility of cutting off Russian gas supplies completely, below the symbolic threshold of the US dollar, which has not been crossed since December 2002.

The euro traded against 0.9998 dollars in a precedent since the beginning of trading in the European currency, before recording a new high, after official figures showed that inflation in the United States rose in June to 9.1%, which reinforced expectations that the US Federal Reserve would follow a stricter monetary policy.

The European currency has lost about 12% of its value since the beginning of the year.


The British pound also fell 0.2% to $1.18580 as concerns persist over the outlook for the British economy, despite data on Wednesday showing an unexpected rise in GDP in May.

 Where is the euro?

"Investors are starting to believe that inflation is so high that it will do so much damage to the economy that the US Federal Reserve will have to stop raising interest rates soon, and even reverse the trend in the first quarter of next year," said analyst Fouad Razakzadeh at StoneX. .

But Stephen Innes, an analyst at SPI Management, says a rebound in the euro is likely to follow sales as long as Nord Stream 1 does not resume pumping Russian gas to Europe.

Fears are inflamed more and more by the complete cessation of Russian gas exports to Europe, as the French government spoke at the end of last week of the "possibility" of cutting supplies.

"How far can the deterioration of the euro go? It probably depends on Russia's desire to aggravate the economic war with Europe," says analyst Jane Foley at Rabobank, a financial services company, noting that "knowing President (Vladimir) Putin's intentions is not an issue. easy".

Given the weak growth in the Eurozone, the European Central Bank can raise interest rates, but with difficulty, in order to combat inflation, which in June reached 5.8% in France and 7.6% in Germany, according to figures published Wednesday morning.