US Dollar Index Rises on Uncertainty

US dollar index is getting a boost as uncertainty remains the biggest threat to high beta currencies. The macroeconomic situation, as well as the individual situations in various regions, is pointing to slowdown and uncertainty. As a result, the greenback is mostly higher today.

Greenback is gaining against the euro especially, thanks to the news that the eurozone is officially in recession. Even talk of the US fiscal cliff isn’t dampening interesting in the US dollar as concerns about what’s next cause worry. Indeed, the latest moves in the attempts to resolve the situation have some hoping.

The hope that the US fiscal cliff issue will be resolved before the Greece issue is part of what is helping the greenback move higher against the euro right now. Dollar is higher against the yen as well, thanks to recent remarks from officials putting pressure on the Bank of Japan to ease further. Only the pound of the major currencies is holding its own against the US dollar right now.

At 14:46 GMT the US dollar index is higher at 81.184, showing strength and moving up from the open at 81.057. EUR/USD is down to 1.2738 from the open at 1.2781. GBP/USD is up to 1.5874 from the open at 1.5867. USD/JPY is higher, moving up to 81.1805 from the open at 81.1705.

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