Bennie Kincaid 
On Monday, the trading price of the dollar recorded a major pull against all major currencies. It was a sight that was no less than a painful experience for the investors.
However, the investors had to digest that due to the circumstances that have been driving the trading price of the dollar.
Dollar Dipped against the Euro
While the value of the dollar dropped against all major currencies, it did end up facing a major decline against the euro.
The year 2022 had really proven to be a tug-of-war between the dollar and the euro. There was a time when the value of the euro had given way to the dollar meaning that one euro was less than a dollar.
This was a major fall that the euro had experienced the dollar and it was mainly due to the fact that the US Feds continued hiking the interest rates.
Due to the interest rates being moved higher, the value of the dollar kept gaining strength and momentum. This is the reason why the greenback was unstoppable against all major currencies.
The values of other currencies kept failing to dominate the dollar almost throughout the mid of the year 2022.
However, as the year 2022 came to an end, the value of the dollar started to decline. It was because the US Feds started to lower the interest rate hikes.
With the US Feds decreasing the interest rate hikes, the value of the dollar has started to retreat. On the other hand, the European region is keeping up with its interest rate hikes policy.
The European Central Bank (ECB) does not want to change its monetary policy. This means that the value of the euro will continue gaining momentum against the dollar.
Euro’s 0.05% Growth against the Dollar
On Monday, the value of the euro recorded a 0.5% pump against the trading value of the dollar. The surge caused the euro to get pushed up to $1.08605.
Initially, the value of the euro had surged to a high of $1.0927 versus the dollar. However, as the trading day came to a close, the euro settled at $1.08605 versus the trading price of the dollar.
It is shocking to see that the previous trading session saw a surge in the trading price of the dollar. However, the very next trading session saw a major decline in the trading price of the dollar.
In the latest trading session, the value of the dollar has recorded a 9-month low against the euro.
Why is the Euro Gaining Strength?
With the euro price rising significantly against the dollar, the question comes what is causing the surge in the euro price?
The answer is the bets and speculations of the investors over the upcoming announcement by the ECB pertaining to interest rate hikes.
The traders expect that the ECB may continue hiking the interest rates. Some are speculating that the Feds may even increase them significantly to fight off rising inflation.
Even the speculations have motivated investors as they want to invest in the Euro and want to push the currency’s price higher.
The value of the euro went to a high of $1.0927 against the dollar on that particular day. It is the highest level that the euro has hit against the dollar since April 2022.
Two More Interest Rate Hikes
The ECB has been increasing interest rates for several months. The sources directly linked with the matter are claiming that the ECB may announce to keep up with their monetary policy for the next couple of months.
This means that the euro is locked as an asset of interest among the traders who will keep on investing in the currency. They will continue pushing its price higher so they can generate high gains when the time is favorable.
