Currency – The dollar index rises, but the gains remain limited

© Reuters. The dollar index rises, but the gains remain limited

The u.s. dollar strengthened against the other major currencies on Wednesday, recovering from losses before, but the gains are expected to remain limited as investors remained cautious after the recent fall in global equities.

The feeling has declined after the global stock markets began to plunge Friday after the publication of the publication the publication of data on employment, which has raised concerns about rising inflation, which has led to a sharp rise in bond yields.

The Dow Jones Industrials has been particularly hard hit Monday, when it recorded its worst fall daily in the history.

However, us stocks rebounded on Tuesday, leading to a drop in the greenback, which had benefited from the sharp decline on Wall Street.

The dollar index, which measures the greenback’s strength versus a weighted basket of exchange of six major currencies, was up 0.16% to 89,65 at 5: 15 am (9.15 am GMT), after a peak of nearly two weeks of 89,58 during the night.

The euro and the pound sterling were on the rise, with EUR / USD down 0.20% to 1,2351 and with the GBP / USD down 0.29% at 1,3910.

In the euro area, the political leadership, the germans would have made a breakthrough in the coalition negotiations on Wednesday morning.

The yen is progressing, with the USD / JPY down 0.42% to 109,09, while the USD / CHF has increased from 0.27% to 0.9385.

Moreover, the dollars of australia and new zealand have decreased with the AUD/USD down 0.47% to 0,7869 and NZD / USD down 0.35% to 0,7314.

Market participants await the policy decision of the monthly RBNZ, scheduled for early Thursday. The central bank should leave interest rates unchanged at 1.75%.

Investors will focus in particular on the policy statement of the RBNZ for potential indications on the future developments of the policy of the central bank.

Moreover, the USD / CAD has recorded a rise of 0.18% to 1,2515.

Like this post? Please share to your friends:
Leave a Reply