Despite these gains, the dollar has declined recently as investors look for indicators of when the Fed's interest rate hike cycle might end. The Fed has raised rates by 425 basis points since March to control rising inflation.
Euro Loses 5.9% Against the US Dollar in 2022
The euro has lost 5.9% against the US dollar in 2022, with a combination of weak European growth, the ongoing conflict in Ukraine, and the Federal Reserve's hawkish policies putting pressure on the currency. However, higher interest rates and stronger economic growth have attracted flows into the euro area. These gains could be at risk if energy prices rise or the European Central Bank becomes less hawkish.
British Pound Drops 10.8% Against the US Dollar in 2022
The British pound has dropped 10.8% against the US dollar in 2022.
Australian Dollar Falls 6.4% in 2022
The Australian dollar, often used as a measure of risk appetite, has fallen 6.4% in 2022. It was up 0.41% on the day at $0.681.
Chinese Offshore Yuan Declines 8.7% in 2022
The Chinese offshore yuan has declined 8.7% against the US dollar in 2022 due to both the strength of the dollar and China's domestic economic slowdown. While rising infection rates have tempered optimism about China's reopening after COVID-19 restrictions, it is expected to boost risk appetite globally once the positive economic impact is fully realized.
Japanese Yen Loses 13.7% Against the US Dollar in 2022
The Japanese yen lost 13.7% against the US dollar in 2022, its worst performance since 2013, due to the Bank of Japan's ultra-dovish stance. The US dollar was down around 1.63% against the Yen at 130.860.
Swiss Franc Steady Against the US Dollar in 2022
The Swiss franc has remained steady against the US dollar in 2022, with the Swiss National Bank increasing the amount of the Swiss currency it sold in Q3 2022 in an effort to fight inflation. It was at 0.923 versus the dollar.
