In today’s trading, the US dollar continues to appreciate due to rising geopolitical tensions, as well as on expectations of faster monetary policy tightening by the Federal Reserve (Fed) compared to other global central banks.

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 adding 0.17% today, while the broader WSJ Dollar Index is up 0.18%.

Risk appetite in global markets is declining amid geopolitical concerns, as well as deteriorating outlook for the global economy, notes IG analyst Yep Jun Rong, as quoted by Dow Jones.

Meanwhile, statements of representatives of the Federal Reserve contribute to the growth of expectations of a sharp tightening of policy by the U.S. Central Bank. Thus, President of the Federal Reserve Bank (FRB) of St. Louis James Ballard said on Monday that he does not rule out the possibility of raising the Fed’s benchmark interest rate by 75 basis points (bps) at once, although he does not think it will be necessary.

“A rate hike of more than 50 bps is not in my base case scenario,” Ballard said during a Council on Foreign Relations event on Monday. – I don’t rule it out, but it’s not in my core scenario.” He noted that the Fed has raised rates at a faster pace in the past.

According to Ballard, the Fed should raise the rate to 3.5% by the end of this year to bring inflation under control, and that would require several 50bp rate hikes.

As of 9:22 Moscow time, the euro was yielding $1.0775 per euro, up from $1.0782 at the close of the previous session.

The pound-dollar exchange rate fell to $1.3001 from $1.3019 at the same time.

The dollar exchange rate against the Japanese national currency by 9:22 Moscow time rose to 128.21 yen – the maximum since May 2002 compared to 126.99 yen at the end of the previous session. On the eve, the head of the Bank of Japan Haruhiko Kuroda confirmed the commitment of the Japanese Central Bank to a soft monetary policy, despite calls for its tightening to curb the weakening of the yen.