By Gina Lee

Investing.com – The dollar was up on Wednesday morning in Asia as investors expect aggressive monetary policies from U.S. Federal Reserve.

By 12:27 ET (04:27 GMT), the index that measures the greenback’s performance against other currencies increased by 0.23%, to 102.007 (12:27 ET).

It gained 0.3% to 129.15.

This pair declined 0.14% to 0.71622, and fell by 0.46% at 0.64833. Data released earlier in the day showed that Australia’s GDP grew and in the first quarter of 2022.

It jumped by 0.34% at 6.6954 and fell by 0.16% at 1.2580. China’s lockdown ended in Shanghai. This signals economic recovery. These were released earlier in today 

“It’s still too early to call a long-term DXY peak,” Westpac strategists wrote in a client note, referring to the dollar index.

“An aggressive 180bp in ECB rate hikes are priced through to end-2023, about the same as the Fed, yet it’s hard to see the ECB moving toe to toe.”

The dollar index could range between 101 and 105 for “a while” before its bull trend resumed, the note added.

Overnight, benchmark 10-year Treasury yields soared to 2.884%, their highest level since May 19.

The Fed chairman Jerome Powell met U.S. President Joe Biden on Tuesday, as historic inflation remains a concern. Biden said that he respects the central bank’s independence but also affirmed a “laser focus on addressing inflation” ahead of the November midterms.

In an effort to combat inflation, the Fed will reduce its $8.9 trillion deficit and publish its Beige Book later in the day. At separate events, the New York Fed President John Williams will speak and James Bullard from St. Louis Fed President will address attendees later in day.

Markets have valued two interest rate increases of half-points each in July and June based on the Fed’s signals.

Data-wise, Friday will see the release of the U.S. employment report.