Russian Conscription and Fed Drop the Euro – Newsbomb – News

Russian Conscription and Fed Drop the Euro – Newsbomb – News
Russian Conscription and Fed Drop the Euro – Newsbomb – News

In the foreign exchange market, the exchange rate of the euro against the dollar is formed at 0.9903 dollars.

The fall in the euro and rise in the dollar are fueled in part by the Fed’s big rate hikes, which have encouraged international investors to bet on US assets. In fact, given the latest – disappointing – inflation data in the US, it looks like the Fed will proceed with further hikes, leading to an even stronger dollar.

Pressure on the euro is not only exerted by the Fed, but also by Russian President Vladimir Putin’s initiative to announce today the first military mobilization in his country since World War II, warning the West that if it continues its “nuclear blackmail”, Moscow she will respond with the power of her vast arsenal.

The presidential partial mobilization order provides for the mobilization of an additional 300,000 men to participate in the military operation in Ukraine.

For the rest of the world, the dollar’s rise is muted. For example, last week the World Bank sounded the alarm, warning that the international economy is heading

The euro, yen and sterling have slipped to multi-year lows against the US currency.

The strong dollar is making the debt of emerging economies, which has been inflated by the onslaught of the coronavirus, more expensive. In fact, according to the International Finance Institute, it is estimated that emerging economies will have debts of 83 billion dollars by the end of 2023.

For smaller nations, the rising dollar also escalates pressures, making imports of some food and fuel staples more expensive. In fact, some states have resorted to their reserves in dollars or other currencies in order to cope with the pressures and stabilize their currencies. And while commodity prices have deflated recently, pressures on emerging markets haven’t eased because of the dollar.

The article is in Greek

Tags: Russian Conscription Fed Drop Euro Newsbomb News

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