US dollar peaks in 2021

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According to foreign exchange market analysts, the exchange rate of the US dollar (USD) reached – during the European night of Wednesday through to Thursday, 11 November 2021 – its maximum since the beginning of 2021. According to these financial experts, this growth is supported by the fact that investors and traders believe that inflation in the United States (US), which reached 6.2% in October 2021, will force the Federal Reserve System (Fed) to respond more quickly regarding the rise of interest rates.

On 11 November 2021, at 8:04 am CET, according to the US Dollar Currency Index (DXY) the USD was seen at a price level of 94.90 with the current daily strengthening of +0.05%. The DXY dollar index compares the value of the USD against six major of the world’s major currencies and is considered to be a good indicator of a change in the growth or decline in the USD exchange rate. The current DXY data show an overall annual increase of this index by +2.29% over the last 52 weeks. Since the beginning of this year its value has increased by +5.49% and it is this figure that represents the maximum increase in the USD exchange rate in 2021.

Both international foreign exchange-Forex market and commodity markets – trading precious metals and especially gold, reacted to these facts, when the rising inflation rate awakened the function of gold as a store of value. Despite strengthening of the USD exchange rate the price of gold increased which means that the inverse rule did not apply this time. On 11 November at 8:32 am CET gold traded at US$ 1,855.80 per troy ounce, with daily growth of +0,41% on the Commodities Exchange Center (COMEX) commodity market. On the Forex market, the USD with its rising exchange rate pushed the single European currency euro (EUR) below the mutual exchange rate of US$ 1.15 per EUR, when on 11 November at 8:05 am CET, this global currency pair EUR/USD traded at US$ 1.1476 per EUR, with a daily decline of EUR -0.02% against the USD.

On 11 November, the USD peaked not only against the EUR, but also against the British pound (GBP), when at 8:40 am CET, the GBP/USD currency pair traded on the Forex market at a mutual exchange rate of US$ 1.34 per GBP. However, the newest data on the level of inflation in the US, which reached 6.2% in October 2021, raised questions regarding the possible rise of interest rates by the Fed in the near future. Consumer prices in the US rose at the fastest annual rate since 1990, as reported by data issued on 10 November, and traders believe the Fed could respond by raising interest rates faster than eurozone countries and European Union countries.

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