The US dollar rises to a 20-year high as the EURO continued to slip to $1.05 on the back of weak data coming from the manufacturing sector.
Under pressure, the EURO is affected by manufacturing output growth in the euro zone, which stalled last month as factories struggled to get raw materials and demand faltered due to the high price of goods.
Investors are bracing for Fed to hike the rate by 50 basis points when they meet this week, all ears will be on Fed Chairman Jerome Powell and his approach to stabilising the US economy. Together with the European Central Bank’s slow rate of tightening and the war in Ukraine’s impact on euro zone has sent investors seeking solace in the Dollar leaving the euro at a 5 year low.
The dollar index gained 5% in April, its best monthly performance since January 2015.
