The dollar index fell to a two-week low after hitting the New High 20.

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The Dollar Index, which measures the movement of the dollar against the six major currencies in a basket of currencies. fell to a two-week low today.

As of 11:32 PM US time, the dollar was 0.44% lower to 127.65 yen, while the euro rose 0.75% to 135.18 yen and rebounded 1.18% to $1.059. The dollar index was down 1.0 percent to 102.77, which was The lowest level since May 5

The dollar index has rebounded 7.5% since the beginning of the year. and hit its highest level in 20 years last week. Responding to expectations that the Federal Reserve (Fed) will accelerate interest rates to curb inflation.

Analysts said investors sold the dollar today. to reduce the holding of US currency and spread the holdings of other currencies such as the Yen and Swiss Franc.

However, the dollar continued to gain momentum as Fed Chairman Jerome Powell insisted the Fed would not hesitate to raise interest rates as high as possible. if necessary to extract inflation.

The CME Group’s FedWatch Tool indicates that investors are now 100 percent weighed on the Fed’s rate hike of at least 0.50% at the other two monetary policy meetings, in June and July. After the Fed raised interest rates by 0.50% in May for the first time since May 2000. And it was the biggest interest rate hike in more than 20 years.

At the same time, the Fed plans to reduce the size of the balance sheet. (Quantitative Tightening : QT) which will start operations from June. The Fed will reduce its balance sheet by $47.5 billion a month. And after three months, the Fed will increase the balance sheet reduction to $95 billion/month.

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