London, Wednesday, 6 July 2022
Following the minutes from the Federal Reserve's meeting in June, which indicated agreement that interest rates must rise further to prevent inflation from becoming entrenched, the dollar index held steady above the 107 mark on Wednesday, maintaining near a 20-year high.
Policymakers underlined the need to combat rising consumer prices, even if doing so slows down the economy.
This strengthened betting that the Fed will raise its funds rate by 75 basis points this month and increased the dollar's appeal as a safe haven.
The impending energy crisis in Europe and the unrest in the United Kingdom also contributed to the demand for the dollar.
(Reporting by: The Decision Maker – Finance editors)