Today, the US Dollar index again hit a fresh 52-week high level at 111.58, ahead of the US Fed Meeting. The US Fed is expected to hike the interest rate today by around 75 bps to restrict the mounting inflation rate. CPI inflation in the US stood at 8.3% in August. In addition to that, today, Russia announced a partial military mobilization, that is pushing the markets to go under turmoil.
Oil prices today fall around 1% to a near 2-week low. Gasoline demands in the US also fell, and investors are worried about a possible global recession. According to available reports, Russian President Vladimir Putin called up 300,000 reservists to fight in Ukraine. Putin has also backed a plan to annex parts of the country. The Russian President has also indicated that he was prepared to use nuclear weapons.
Russia's aggression in Ukraine is driving investors towards the safe-haven US dollar today, which is boosting the value of the greenback. According to available reports, the interest-rate sensitive US 2-year Treasury Yields are currently at a 15-year high level, just under 4%, up from around 28 bps a year ago.