Dollar languishes as recession fears mount; yen bounces while won slides
The U.S. dollar remained under pressure on Thursday as it looked set to extend declines against major peers to a fourth day, hurt by Treasury yields wallowing near two-week lows amid rising concerns of a recession.
The safe-have yen bounced, climbing back from 24-year lows to the dollar. The risk-sensitive Australian dollar dropped, and the Korean won slid to its weakest level for 13 years.
The dollar index, which measures the currency against six key rivals, slipped 0.07% to 104.14, bringing its decline since Friday to 0.44%. It has fallen 1.54% from the two-decade peak of 105.79 reached on June 15, when the Federal Reserve raised rates by 75 basis points – the biggest hike since 1994.
As Russia cuts gas, German industry grapples with painful choices
The German companies that drive Europe’s biggest economy are contemplating painful cuts to their output and resorting to polluting forms of energy previously considered unthinkable as they adjust to the prospect of running out of Russian gas.
Reduced Russian deliveries have accelerated efforts across German industry to find alternatives to keep factories running and limit the economic cost.
Chemical giant BASF is working out which factories could cut output first and rival Lanxess may delay shutting some coal-fired power plants.
Oil falls as investors eye recession risks
Oil prices continued to retreat on Thursday as investors reassessed the risks of recession and the impact of interest rate hikes in major economies on fuel demand.
Both benchmarks tumbled by as much as $3 a barrel in early morning Asian trade, after plunging around 3% in the previous session. They are at their lowest levels since mid-May.
Biden asks Congress for gas tax holiday to lower record pump prices
U.S. President Joe Biden on Wednesday called for a three-month suspension of the federal gasoline tax to combat record prices, but opposition from lawmakers within his own party suggests the request may never be met.
American families paying much more for gasoline deserve some financial relief, Biden said as he pushed Congress to act, while commenting that a suspension of the 18.4 cents per gallon tax was not enough.
“I fully understand that a gas tax holiday alone is not going to fix the problem but it will provide families some immediate relief, just a little bit of breathing room, as we continue working on bringing down prices for the long haul,” Biden said.
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