Title: Dollar Largely Flat; Good Times Likely Lie Ahead
Dec 29, 2021 01:52AM ET
The dollar traded broadly unchanged at the start of European trade on Wednesday, struggling for direction amid low holiday volume, but is expected to gain strength in 2022.
At 1:55 AM ET (0655 GMT), the dollar index, which tracks the greenback against a basket of six other currencies, was trading largely unchanged at 96.230.
The USD/JPY rose 0.1 percent to 114.90, just off Tuesday's one-month low of 114.94, the EUR/USD fell 0.1 percent to 1.1305, the GBP/USD fell to 1.3430, slipping from a five-week high, and the risk-sensitive AUD/USD rose to 0.7229.
The dollar, thinking about a place of refuge, has made some intense memories of it of late, as the new meeting in hazard resources depended on the view that the Omicron strain was less perilous than the Delta variation, the predominant strain up to this point, and along these lines would not be excessively adverse to the recuperation of the worldwide economy.
Nevertheless, the dollar index has had its best year since 2015, and many expect further advances for the greenback in 2022, as the US Federal Reserve recently indicated that it will start raising interest rates next year, ahead of other major central banks, including the European Central Bank and the Bank of Japan in particular.
Meanwhile, USD/TRY rose 2.3% to 12.0812, with the lira weakening amid continued investor concerns over Turkish monetary policy, having risen more than 50% last week after President Recep Tayyip Erdogan announced a program to protect lira deposits against currency fluctuations.
The Turkish lira had recently fallen to a record low after the central bank cut its key interest rate by 500 basis points in September, even as inflation soared.