The stability of the dollar today towards its largest increase since 2015!

The performance of the US dollar was little changed in limited European trading on Friday, and it is still on track for its biggest increase in seven years.

And the US dollar settled today in today’s trading at 103.302 against a basket of foreign currencies, while the euro rose against the dollar by 0.34%, to record 1.0697.

Throughout the year, the dollar has been supported by interest rate hikes by the Federal Reserve, a policy that the central bank initiated in an attempt to calm severe inflation. The Fed has raised borrowing costs by an unprecedented 425 basis points since March, and interest rates are now at their highest level in 15 years.

The euro rose 0.07% to $1.0667, for a total annual decline of more than 6%. The single currency is now trading at just over $1, after recovering from a sharp decline earlier this year that left it below parity against the dollar for the first time in nearly two decades.

In addition to the dollar’s strength growing due to the Fed’s monetary policy actions, the euro has also been hurt by ongoing concerns about the war in Ukraine and the impact of a potential energy crisis.

The British pound fell slightly, by 0.06%, to $1.2045. The pound remained on track to decline by more than 10% in 2022, ending a year marked by political turmoil and market volatility.

Both currencies got some support from a series of interest rate increases by the European Central Bank and the Bank of England, which are also trying to bring down high rates.

On the other hand, the Bank of Japan unveiled a third day of unscheduled bond buying, as it looks to refute bets that it will start to move away from its recent accommodative monetary policy. But, even so, investor sentiment continued to see him start to tighten policy, which in turn supported the Japanese Yen against all of its G10 peers.

The Australian dollar maintained gains of 0.21% to $0.6793, but was still down more than 6% y/y against the greenback. The New Zealand dollar fell 0.15% to $0.6337, down more than 7% for the year.

Meanwhile, the Chinese yuan fell to 6.9623 per dollar. It is heading for its worst annual performance since data first became available in 2011, reflecting China’s aggressive approach to containing coronavirus infections.

Beijing has shown signs that it is beginning to ease its so-called zero-COVID policy, although the relaxation in rules is seen as a possible cause for the recent rise in cases across the country. Italy, the United States and India are among the countries now requiring travelers from China to present negative Covid tests.

Meanwhile, the Russian ruble rose 1.49% against the dollar to 71.0906, rebounding from an eight-month low touched during the previous session.