US dollar is making its move. After heading lower against some of its major counterparts, notably the euro, greenback is heading higher again as uncertainty takes hold and risk aversion sets in. The dollar index is heading higher, the greenback is up against all of its major counterparts.
With risk assets heading lower, the US dollar is finding support as a safe haven. Earlier, the greenback was down against currencies like the euro, but now the situation has changed and the greenback is up against the 17-nation currency. Dollar is also gaining against the yen and the pound.
US dollar is finding support as stock indexes in the United States and Europe drop today. It’s the last day of the week, month, and quarter, and marks the halfway point in the year. With stock indexes dropping and commodities (particularly gold) struggling, it is little surprise that the US dollar index is on the rise.
Indeed, there is just a bit too much uncertainty right now. There are debates over what the Federal Reserve means when various policymakers make statements — including statements meant to “clarify.” And there is also a great deal of uncertainty about the eurozone.
At 15:27 GMT the dollar index is up to 83.1690 from the open at 82.9860. EUR/USD is down to 1.3017 from the open at 1.3040. GBP/USD is down to 1.5201 from the open at 1.5260. USD/JPY is up to 99.1070 from the open at 98.3510.
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