USD exchange rate today March 14: USD increases or decreases depending on the Fed meeting this week

 Last week's closing session, on the international market, the USD Index (DXY), which measures the volatility of the greenback with 6 major currencies, stood at 99.13, up 0.48%.

The USD in the past week closed on Friday (March 11) up 0.63%, and gained 0.48% in the past week.

Last week was a volatile week for the USD. The greenback started the week with a high gain, the DXY index hit 99.42 on March 7, then immediately cooled down two days later when crude oil prices plummeted from about $130/barrel to $110. /bin. However, the index recovered strongly from the low of 97.71 and ended the week with a strong gain of 0.63%, regaining the 99 mark of the first session of the week. Hot inflation is the factor that helps the greenback recover. According to newly released data, the US Consumer Price Index (CPI), a measure of inflation, increased by 7.91% in February from 7.53% in January.

The issue of rising inflation has led investors to expect the US Federal Reserve (Fed) to raise interest rates by 25 basis points this week. But will the Fed surprise the market with a sharp increase of 50 points? Considering the ongoing geopolitical tensions, investors bet less on a 50 basis point rate hike by the Fed. The Fed meeting will take place on Wednesday, March 16.

The support at 97.80 mentioned last week kept the greenback on track with the DXY index reaching above 99. The index dropped to 97.71 at times and then immediately after. immediately rebounded. This helps maintain the bullish outlook for the greenback at 100. As mentioned last week, it cannot be ruled out that the index will experience a downward correction from 100 to 98.50- 98. However, overall, it will continue to remain positive. A break of the 100 mark would then pave the way for a future 101-102 in the medium term. 97 and 96.50 are important support levels. In case this index breaks through 96, the market will move to a downtrend.

Meanwhile, the euro has also had a volatile week. Russia's special military operation in Ukraine continues to have a negative impact on the single currency. Besides, the European Central Bank (ECB) also surprised the market when it announced that it would end its economic stimulus measures under the Asset Purchase Program in the third quarter of this year. However, the decision of the ECB is still not enough to support the euro because falling is still the dominant trend in the past week.

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