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Bauer considers accelerating balance sheet shrinking, the influx of Japanese yen, Swiss franc, safe-haven dollar depreciation, and the dollar still rose 1.9% in November | Anue Juheng

The U.S. dollar fluctuated lower against a basket of major currencies on Tuesday (30th). The safe-haven Japanese yen and Swiss franc rose strongly, mainly due to increased concerns about the Omicron variant virus, and Fed Chairman Bauer said that he would discuss speeding up the reduction of debt purchases. , And hinted that the term “temporary” would no longer be used to describe inflation, which caused investors to worry that the Fed’s active interest rate hikes might dampen the momentum of economic recovery and greatly diminish appetite for risks.

In late New York trading, the ICE Dollar Index (DXY), which tracks the trend of the U.S. dollar against six major currencies, fell 0.3% to 95.90, but it still rose about 1.9% in November.

The U.S. dollar fell 0.4% against the Japanese yen to 113.065 yen, and the U.S. dollar fell 0.4% against the Swiss franc to 0.9185 Swiss francs.

After Bauer testified in Congress on Tuesday and made hawkish remarks, DXY was promoted for a while, but was unable to follow suit. Analysts said that Bauer’s statement showed that the Fed may have the urgency to take action, but the financial market is not yet ready.

Edward Moya, senior market analyst at OANDA, said: “On the whole, the short-term outlook is still facing increasing risks. Investors have always regarded the Fed as a safety net, but now the Fed looks a little panicked. They misjudged the inflation situation, and it now seems to have Hurry up to reduce debt purchases and raise interest rates quickly. If inflationary pressure continues and the interest rate hike cycle accelerates, it may threaten the financial situation.”

The U.S. stock market plummeted and the market risk appetite was curtailed. As Modena’s chief executive said, the effectiveness of the existing vaccine against the Omicron virus strain may be lower than that of other variant viruses.

In addition, Regeneron Pharmaceuticals also stated that the current antibody therapy is less effective in the face of Omicron, further deepening market fears.

All this means that it will take longer for the global economy to recover to its pre-epidemic level.

The euro appreciated 0.4% against the US dollar to 1.1335 US dollars. The euro has appreciated for three consecutive days, writing the biggest three-day gain since December last year.

Cryptocurrencies fluctuated sharply during the intraday session. In late New York trading, Bitcoin fell 0.3% to 57645 USD, while Ethereum rose 4.8% to 4668 USD.

As of Wednesday (1st) about 6:00 Taiwan time Price:


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