US Interest Rate Hike, US Dollar Index Strengthens 8% (YTD) to June 16, 2022

The US dollar index strengthened to 103.63 on Thursday, June 16, 2022, according to *Yahoo Finance*.

This figure represents an 8.32% increase compared to its position on December 31, 2021 (year-to-date/YTD). Compared to June 16 of the previous year, the US dollar index has strengthened by 13.72% (year-on-year/YOY).

This strengthening is driven by investors shifting their portfolios to low-risk assets, in line with rising US inflation. Furthermore, the Federal Reserve's interest rate hikes are attracting investors to invest in the US dollar.

The US dollar is currently considered the safest place to park funds to avoid losses amidst financial market volatility. This has caused the US dollar to appreciate against major world currencies, namely the euro, yen, Canadian dollar, franc, and krona.

Below is the strengthening of the US dollar against 6 major world currencies (YTD) up to June 17, 2022:

1 Japanese Yen: down 16.92% to 134.53 yen
1 Swedish Krona: down 10.95% to $0.10
1 British Pound Sterling: down 8.92% to $1.23
1 Euro: down 7.13% to $1.05
1 Swiss Franc: down 2.97% to $1.06
1 Canadian Dollar: down 1.68% to $0.77

*Data as of June 17, 2022, 2:32 PM WIB