On Thursday (June 15), the U.S. dollar index maintained a fluctuating upward trend during this trading day. It opened at 103.01 today, with a maximum of 103.31 and a minimum of 102.91. As of press time, the U.S. dollar index was at 103.27, an increase of 0.27%.
Many developed economies “accompany” the US interest rate hike
The Fed‘s non-stop pace of interest rate hikes has prompted many central banks to follow suit. Out of multiple considerations such as curbing inflation and stabilizing the exchange rate of their currencies, major developed economies have followed the United States into a cycle of interest rate hikes.
The European Central Bank will start the process of raising interest rates in July 2022. As of the last interest rate meeting on May 4 this year, the European Central Bank has raised interest rates 7 times in a row, with a total of 375 basis points.
In addition, on May 11, the Bank of England, the central bank of the United Kingdom, announced that it would raise the benchmark interest rate from 4.25% to 4.5%. The Bank of Canada announced a 25 basis point interest rate hike on June 7, raising the benchmark interest rate from 4.5% in April to 4.75%, a record high in about 22 years. The Reserve Bank of Australia announced on June 6 that it would raise the benchmark interest rate by 25 basis points to 4.1%, the highest level since April 2012.
