The US dollar nudged up against euro, lifted by higher Treasury yields as global inflation worries flared anew. The dollar index, which measures the currency against six major peers, including the euro, rose 0.2% to 101.96, extending Tuesday’s gains, when data showed euro zone consumer inflation soaring to a record.
On Monday the rouble firmed sharply in volatile trade on the Moscow Exchange, reversing some of last week’s heavy losses as it retained support from capital controls and Russia’s strong trade account.The rouble plunged last week as the central bank slashed interest rates, signalling more cuts.
On Thursday the US dollar was little changed, hovering above a one-month low, as minutes from the Federal Reserve’s May meeting contained few surprises, with most participants favouring additional 50 basis point rate hikes at the June and July meetings.
US dollar remains directionless around 78.50 during today’s Asian session, trimming the first weekly gain in three around an all-time high. The Indian rupee pair’s recent moves could be linked to the traders’ indecision and sluggish markets.
The US Dollar Index, which gauges the greenback vs. a basket of its main competitors, manages to leave behind Wednesday’s pullback and advances modestly on Thursday. The US dollar index reverses two consecutive daily pullbacks and retargets the 103.00 region after bottoming out near 102.30 during the Asian trading hours, as market participants continue to digest the latest FOMC event.
The Rouble jumped on today to around a two-year high against both the dollar and the euro, retaining the support of hefty capital controls as the European Union proposed a new package of sanctions against Russia over events in Ukraine.
The US dollar held just below a 20-year high against a basket of currencies on Monday before an expected Federal Reserve rate hike this week, with traders focused on the potential for the U.S. central bank to adopt an even more hawkish tone than expected.
Following nearly two decade US dollar highs around 104.00, US dollar index is finally facing some corrective downside at the end of the week. There is still scope for further downside, as the index keeps navigating the overbought territory, as per the daily RSI around 75.
US Dollar Index retreats for the second session in a row and revisits the area below the key 100.00 mark on Thursday. Price action around the index continues to favour extra weakness.
The US dollar was flat to slightly higher on Wednesday, retreating from sharp gains the previous session following hawkish comments from one of the Federal Reserve’s top officials, as investors looked to the release of the U.S. central bank’s minutes of its last monetary policy meeting.