The US dollar rose during Wednesday’s trading, rebounding from 13-month lows, reached in yesterday’s session, as investors awaited the release of some important data on Thursday and Friday.
Dollar Now
On the trading front, the DXY dollar index – which measures the performance of the greenback against a basket of 6 other major currencies – rose by 0.45% to 100.99 points, but is still on track for its biggest monthly loss since November 2022, after touching early in Asian trading the level of 100.51 points.
What influenced the dollar’s movements today?
The dollar was able to put an end to its recent losses and rose during today’s trading in a corrective move after recording its lowest levels since July 21 of last year during yesterday’s session, Tuesday, and the dollar recovered to erase some of those losses amid profit-taking among investors in the wake of the sell-off in the US currency.
This comes as traders closely await the release of upcoming economic data that may affect the Fed’s monetary policy decisions at the September meeting, as the US Federal Reserve’s preferred inflation index is due on Friday, one day after the release of the US GDP estimate.
The dollar’s rise also benefited from investors’ caution ahead of the release of the NVIDIA earnings report, as Wall Street eagerly awaits as US stock index futures stabilize in pre-market trading, reflecting market caution about the potential impact of the US chip giant’s earnings report.
The dollar has been sensitive to stock market movements this year largely as investors turned to it as a safe haven as a result of the volatility witnessed in the most risky stock market during the last period, and this helped boost dollar profits, along with profit-taking, today, despite the decline in US Treasury yields.
Read also:Citibank warns of risks of regional elections could affect euro
Dollar and other currencies
Today’s dollar rally weighed on other major currencies, with the euro falling 0.34% against the dollar to $1.3230 after hitting its highest since March 2022 on Tuesday, driven by expectations that the Bank of England will proceed more cautiously with monetary policy easing than the Federal Reserve.
Meanwhile, the euro also fell almost 0.50% against the US dollar to $1.1129, but remains near 13-month highs – which have maintained trading close for the past three sessions – against the greenback.
This came as the Japanese yen fell slightly against the dollar, with the US dollar rising 0.25% against the Japanese yen to trade at 144.27 yen after hitting a three-week high on Monday.
Meanwhile, the Australian dollar fell by about 0.13% against its US counterpart, after the Australian dollar reached an 8-month high, after domestic inflation slowed to four-month lows in July, but the slowdown came in less than expected, pushing the Australian dollar to trade at $0.6783, with expectations that the Australian interest rate will remain unchanged for longer.
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