Shares and Euro rise on Ukrainian advance in Kharkiv province
The possibility that the European Central Bank may need to increase its benchmark interest rate to 2% or more in order to combat record high inflation despite an impending recession also aided the single currency. The euro last increased 0.9% to $1.01385, having previously reached its highest level versus a weakening dollar since August 17.
The dollar index, which tracks the greenback against a basket of six major currencies, was down 0. 5% to 108.17, recovering slightly after earlier dropping to its lowest level since Aug. 26. Still, the index is up over 12% this year, having gained over 10% against the euro, 13% against the pound and 24% against the Japanese yen.
A soft number might revive speculation the Federal Reserve will only hike rates by 50 basis points this month, though it would likely have to be very weak to have a real impact given how stridently hawkish policymakers have been recent. The weaker dollar helped lift gold 0. 6% to $1,727 an ounce, away from last week’s low of $1,690.
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