The exchange rate of the US dollar rose sharply, hitting a six-week high against both the euro and the yen. Monetary analysts attributed the rise in the exchange rate of the US dollar to technical factors, short covering and growing concerns about the economic growth prospects in Europe.

Of course, the sharp rise of the dollar is somewhat confusing. After all, the euro just reached parity with the dollar in mid-July. Observers believe that the decline of the US stock market and the deterioration of the US economic growth prospects will change the situation of a strong dollar.

Shahab Jalinoos, chief foreign exchange strategist at ubs warburg, said, "We call it a liquidity surface, not a fundamentals."

The market generally expects the Fed to raise interest rates, which is the main reason for the sharp rise in the price of two-year government bonds, which is closely related to the Fed's fund interest rate. The current market price of treasury bonds futures reflects the expectation that the Federal Reserve will reduce the interest rate by at least 0. 25 percentage points before the end of the year. The price of government bonds plummeted, and the yield of two-year government bonds hit a record low yesterday.

At present, the exchange rate of the euro against the US dollar has fallen to the lowest point in six weeks, reaching 96.54 cents 1 euro. The exchange rate of USD against JPY rose by 1.3% to 120.93 JPY.