The US dollar is getting cheaper against the euro, but is showing growth against the Japanese yen.

Meanwhile, the dollar ICE index is near its highest level since December 2002, as market participants expect the US Federal Reserve (Fed) to continue raising rates at an aggressive pace to combat rising inflation, which will support the dollar, Trading Economics writes.

Additional support for the dollar comes from investors fleeing risk assets amid heightened worries about a potential recession in the global economy.

The Reserve Bank of Australia (the country’s central bank) decided to raise the key rate by 50 bps to 1.35% per annum following its meeting on Tuesday. The Bank started raising the rate in May – then the step amounted to 25 bp, in June the rate was raised by 50 bp.

According to the Central Bank’s forecast, inflation in Australia in 2022 will be 7%, which is above the target range of 2-3%. “Curbing inflation is likely to take years,” the regulator said in a statement.

Market participants this week are awaiting the publication of the minutes of the Fed’s June meeting, which could provide more clarity on the regulator’s intentions, and U.S. labor market data for June.

As of 9:05 Moscow time, the euro was up 0.14% against the dollar to $1.0437, compared to $1.0422 at Monday’s market close. The value of the U.S. currency paired with the Japanese currency rose by 0.42% to 136.19 yen against 135.62 yen at the close of the previous session.

Against the pound and the Australian dollar, the US dollar is stable.

The pound is trading at $1.2115 compared to $1.2118 at the end of the previous session, while the Australian dollar is trading at $0.6865 compared to $0.6866 at the market close on Monday.

The ICE-calculated index, which shows the dollar’s performance against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), is down 0.04%. The broader WSJ Dollar Index is down 0.01%.