Dollar hits a one-year high versus a basket of currencies

The U.S. dollar increased to a one-year high versus a basket of currencies on Thursday. The dollar was supported by expectations that the Fed will tighten policy in coming months. Remarkably, stock futures indicated a stronger Wall Street open as the third quarter ends.

On September 293, Federal Reserve Chairman Jerome Powell announced that resolving tension between high inflation and still-elevated unemployment is the most critical issue facing the Fed right now. Notably, the central bank’s two goals of stable prices and full employment are in potential conflict. 

The greenback increased by 0.15% against an index of currencies to settle at 94.489. It headed for a rise of 2.3% on the quarter. Meanwhile, the euro declined by 0.23% to hit $1.1566, its lowest level versus the greenback since July 2020. Remarkably, the U.S. currency reached its highest since February 2020 against the safe-haven yen at 112.05.

Additionally, S&P futures surged 0.4% after the S&P 500 closed 0.16% higher. Notably, that put the index on track for a 1.4% gain on the quarter. However, stocks have lost some of their exuberance of recent weeks on concerns about supply shortages, increasing prices, and the pace of economic return.

Moreover,, the yield on benchmark 10-year Treasury notes was at 1.5323%, having increased sharply earlier in the week.

Electricity prices in France are anticipated to grow about 12% by February

Additionally, world stocks were intact after several days of losses but were set to end the quarter down around 1%, after reaching record highs earlier this month.

European stocks gained 0.29%. The UK’s FTSE advanced 0.22%, while France’s CAC 40 was flat.

On Thursday, French environment minister Barbara Pompili announced that electricity prices in France are anticipated to grow about 12% by February, mentioning inflationary pressures sweeping across Europe.

In September, French inflation reached a near 10-year high of 2.7%, less than forecast. Meanwhile, Italy’s annual inflation rate increased to 3.0%.

Germany’s 10-year government bond yield was slightly changed at -0.208%.

Oil prices dropped amid surging U.S. crude oil inventories and the strong U.S. currency.

Brent crude dipped by 0.36% at $78.44 a barrel, while U.S. crude declined by 0.15% to settle at $74.72.

Spot gold stood at $1,732 per ounce, close to seven-week lows, hit by the strong greenback.

In cryptocurrencies, the largest cryptocurrency in the world, Bitcoin, traded close to $43,000. Meanwhile, the second-biggest digital coin, Ethereum, was at $2,968.34