The general index of the US dollar, which is concerned with measuring the strength of the dollar against a basket of currencies (Dollar Index), continues to record high levels since the beginning of the week yesterday, Monday, trading at its highest level since September 2002 at 108.45, benefiting from the high market expectations of the US Federal Reserve to tighten monetary policy in its meeting after less than Two weeks ago, it placed it as one of the most important safe haven currencies, amid anticipation in the markets for US inflation figures, tomorrow, Wednesday

Ahead of the inflation figures that are expected to be released tomorrow, Wednesday, market expectations rise that the US Federal Reserve will raise interest rates by 75 basis points for the second time in a row, which records support for the continued rise of the US dollar, while the euro is approaching parity levels with the US dollar, and it is now trading at 1.0006 levels.

For the first time since 2002 The US consumer price index recorded the highest inflation levels since December 1981 in May at 8.6% with an increase in energy prices by 35%, while markets expect inflation to rise to 8.8% in June and to rise by 1.1% on a monthly basis from 1%.

The rise in global concerns about the expected economic recession in the world is also a contributing factor to the rise of the US dollar, as the US dollar is considered one of the most important safe-haven currencies at the present time.

The biggest affected by the rises of the US dollar is the euro currency, which is struggling with the rises of the dollar on the one hand and the rise in geopolitical tensions in the euro area from the crisis of the Russian-Ukrainian war and the energy crisis and accelerating the recession on the other hand.

The euro currency contributes to the US dollar index, known as the dollar index, by more than half, which is equivalent to 57%, and therefore a large part of the US dollar’s rallies are due to the weakness of the euro, especially with the rise in fears about the Russian gas stopping after the end of maintenance in Nord Stream 1 next week.

On the economic data front, the ZEW Institute for Business Confidence in Germany and the Eurozone is expected to announce its figures shortly, and it is expected to come in negative for the fifth month in a row.

The Japanese yen, in turn, recorded a new low early Monday at 137.55 for the first time in more than two decades (24 years), as Japanese Prime Minister Kishida confirmed that his government will take all possible measures to deal with the rise in prices.