Dollar Index Vs Other currency - Equichain View

Dollar Index Vs Other currency – Equichain View

Any move in currency of any country is due to multiple reason and it is very dynamic in nature. Strong currency reflects strength of that country and vise-a-versa. Normally central banks in developing country intervene in currency market in view of the domestic interest.

• US Fed increase interest by 25 bps in March 2022 & by 50 bps in May 2022 meeting. US Fed announce Balance Sheet downsizing starting from 1-June-22 with $47.5 billion and will reach its full amount of $95 billion by September 2022.

INR against 3 major currencies – USD, EUR & GBP from 1-Jan-20 to 9-May-22.
&
USD/INR @ 77.50 – all time low – Key developments

US Dollar being a reserve currency and enjoys the status of safe heaven investment, any risk-off trade will move money towards US treasury and US Dollar.

US Dollar Index basket consists of 6 currencies – EURO, SWISS FRANC, JAPENESE YEN, CANADIAN DOLLAR, BRITISH POUND AND SWEDISH KORNA.

Rubble continues to trade strong compared to other currencies since Russia-Ukraine crisis. It had a highly volatile move post announcement on sanctions by US & European nations.

Click on the attachment to read the full report:

Dollar Index Vs Other Currency – Equichain View.pdf