The dollar hit its highest levels in 2021 against the pound and the euro, today, Thursday, while the yen suffered its worst decline in a month, after the highest inflation reading in the United States in 30 years, which boosted bets on raising interest rates.
And according to Arab Net, data showed consumer price growth in the United States at the fastest annual pace since 1990 last month, and traders believe that the Federal Reserve (the central bank) will respond by raising interest rates faster than its peers in Europe and Japan.
The euro fell as the European Central Bank considered reluctance to tighten policy, and fell further to $1.1465, on Thursday, its lowest level since July 2020.
The British pound also fell, recording a new low, the lowest in 11 months, on Thursday, at 1.3393 dollars. The yen continued to decline sharply from its recent gains to 114.15 against the dollar and the Australian and New Zealand dollars recorded a one-month low.
The Australian dollar fell 0.4% to $0.7298, while its New Zealand counterpart fell 0.3% to $0.7038.
