So far in 2022, the value of the dollar had had levels like those we saw in the early 2000s, achieving a significant parity with the euro and the growth of the Japanese yen.
The US currency is strengthening its position compared to the world’s major currencies. However, the dollar has been gaining ground against the pound sterling –almost to the same extent as against the euro– and to a lesser extent against the Chinese yuan.
One of the main reasons that this has happened is the inflation derived from the pandemic, as well as the effort that the United States monetary authorities have put in to stop it through extremely high interest rates.
And it is that, to tell the truth, the increase in base interest by the US Federal Reserve is key to attracting investors to the dollar, offering a higher return on credit.
On the other hand, there is currently a major fear about a gas crisis in Europe, which, in the event that Russia decides to cut off its supply, will further alienate buyers from the euro, a trend that the European Central Bank is also trying to counteract. increasing interest rates.
According to information from Yahoo Finance and as the graph deposited above shows, since March of this year, there has been a much more pronounced increase in the dollar, a fact that happens, precisely, shortly after the Federal Reserve approved the first increase in its target interest rate in more of three years.
It should be noted that, as of November last year, the strengthening of the value of the dollar was already around 5 percent against the euro, the yen and the pound sterling, since, at that time, the inflation forecasts presaged an imminent rise in interest rates and investors began to bet more on the dollar.
In this way, with data that is recorded until July 29, the dollar has registered an increase of 23 percent with respect to the yen in the last twelve months, taking as a reference its price on August 2, 2021 according to Yahoo Finance . In the same period, the dollar gained 16% against the euro and 14% against the pound sterling. The Chinese yuan, in turn, has only lost less than 5% of its value against the US currency.