USD price highest in 20 years

This currency has appreciated since the US Federal Reserve (FED) raised interest rates, but this is the session when the greenback continues to hit new records.

The Dollar Index, a measure of the greenback’s strength against six other currencies in a basket of major currencies, rose 0.94% to 104.82 points on Thursday (May 12). Part of the reason is that the consumer price index data for April has just been released.

The consumer price index, though only up 0.3%, is a signal that US inflation may have peaked. However, inflation is still above 8%, leading investors to believe that the FED will continue to raise interest rates strongly in the next meetings.

Investors also believe that high interest rates not only slow down the US economic growth, but also affect the growth rate of the global economy. So dong USD become a “safe haven” during this period compared to other investment channels.

Contrary to the dollar, gold and shares of many US companies continued to be sold out in Thursday’s trading session.

The market in this trading session received more information that the Chairman of the US Federal Reserve (FDE), Mr. Jerome Powell, has officially received a second term of 4 years. Last week, Mr. Powell reaffirmed in public that the Fed will use all tools at hand to continue to cool down inflation.

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