The US dollar is expected to remain well supported in the first half of 2022 but the outlook for the rest of the year will depend on whether central banks focus on inflation and begin policy normalisation, according to Emirates NBD, Dubai’s biggest lender by assets.
Policy differentials will be the main driver of currency markets this year, with the US Federal Reserve’s shift to a more hawkish stance on inflation helping to support the US dollar against other currencies, Edward Bell, senior director of market economics at Emirates NBD, said in a note on Friday.
The Fed will quicken the pace at which it is pulling back its support for a post-pandemic US economy and is expected to raise interest rates three times this year, Mr Bell said.
senior director of market economics, Emirates NBD
In an abrupt policy shift, the Fed announced in December that it will reduce its monthly bond purchases at twice the pace it previously announced and is likely to end them altogether in March. The accelerated timetable puts the Fed on a path to start raising interest rates in the first half of this year.
“The gap between the Fed and European Central Bank remains quite evident with the ECB maintaining a policy of quantitative easing this year, even as some of the more extraordinary pandemic-related stimulus is pulled back and rates are likely to be held still below zero,” Mr Bell said.
Although inflationary pressures are running hot in the eurozone, ECB officials appear to have a mixed perspective on inflation, with some holding on to the “transitory” narrative, while others have said the regulator will do whatever needs to be done to bring prices on target, Mr Bell added.
“Unless there is a dramatic shift in policy tone from the ECB in the next few months, which we don’t see as likely, we would expect to see yield differentials move in favour of the US dollar as the Fed brings an end to quantitative easing, hikes rates at least once in H1 and firms up its plans for drawing down its balance sheet,” he said.
“We are targeting a EUR/USD level of 1.12 by end of Q1 and 1.10 by Q2. In H2, we would expect to see some more policy convergence as the ECB begins to consider policy normalisation with a Q4 target of 1.13.”
Meanwhile, the Bank of England was first off the block among major developed market central banks in hiking rates, lifting the bank rate by 15 basis points at its December meeting. Rates are expected to move steadily higher in 2022, according to Emirates NBD.
Swaps markets are pricing in four interest rate hikes from the BoE by the end of 2022, it added.
“We expect to see GBP/USD appreciate, hitting 1.40 by the end of the year,” Mr Bell said.
The outlook appears brighter for commodity currency central banks, according to the note.
The Bank of Canada ended its quantitative easing programme in October and may push ahead with rate hikes this year on the back of a strong economy and rise in energy prices. The BoC is expected to raise interest rates five times by the end of this year, the lender said.
Brief scores:
Newcastle United 1
Perez 23'
Wolverhampton Rovers 2
Jota 17', Doherty 90' 4
Red cards: Yedlin 57'
Man of the Match: Diogo Jota (Wolves)
Francesco Totti's bio
Born September 27, 1976
Position Attacking midifelder
Clubs played for (1) - Roma
Total seasons 24
First season 1992/93
Last season 2016/17
Appearances 786
Goals 307
Titles (5) - Serie A 1; Italian Cup 2; Italian Supercup 2
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
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Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
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The five new places of worship
Church of South Indian Parish
St Andrew's Church Mussaffah branch
St Andrew's Church Al Ain branch
St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
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- An elevated football field that doubles as a helipad
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APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
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Engine: 4.0-litre V8 twin-turbocharged and three electric motors
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Torque: 730Nm at 4,000-7,000rpm
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Lexus LX700h specs
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Know your cyber adversaries
Cryptojacking: Compromises a device or network to mine cryptocurrencies without an organisation's knowledge.
Distributed denial-of-service: Floods systems, servers or networks with information, effectively blocking them.
Man-in-the-middle attack: Intercepts two-way communication to obtain information, spy on participants or alter the outcome.
Malware: Installs itself in a network when a user clicks on a compromised link or email attachment.
Phishing: Aims to secure personal information, such as passwords and credit card numbers.
Ransomware: Encrypts user data, denying access and demands a payment to decrypt it.
Spyware: Collects information without the user's knowledge, which is then passed on to bad actors.
Trojans: Create a backdoor into systems, which becomes a point of entry for an attack.
Viruses: Infect applications in a system and replicate themselves as they go, just like their biological counterparts.
Worms: Send copies of themselves to other users or contacts. They don't attack the system, but they overload it.
Zero-day exploit: Exploits a vulnerability in software before a fix is found.
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
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The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
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The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
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- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
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Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi
Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
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For the cappuccino, luqaimat and aseeda.
Al Mrzab Restaurant
For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.
Al Derwaza
For the fish hubul, regag bread, biryani and special seafood soup.
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Jack Moore: Why the assassination is such a monumental gamble
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Hussein Ibish: Trump's order on solid constitutional ground
Simon Waldman: Cautious Israel keeping a low profile
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National Editorial: Suleimani has been killed, now we must de-escalate
Jack Moore: Why the assassination is such a monumental gamble
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Damien McElroy: A CEO tasked with spreading Iran's influence
Hussein Ibish: Trump's order on solid constitutional ground
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Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
