The US dollar advanced today as Forex market participants thought that the United States will be able to maintain stable growth despite the recent string of poor macroeconomic data.
The Dollar Index added 0.2 percent to 82.788 today. Yesterday, it dropped 0.9 percent, reaching the weakest level since May 9. The drop was caused by speculations that the Federal Reserve will maintain its stimulus program.
Prospects for growth led to talks that the Fed will scale back extremely accommodative policy that was weakening the dollar. At the same time, the monetary easing made the currency attractive for carry traders, who prefer to borrow money in countries with low interest rates.
USD/JPY rose from 99.50 to 100.06 as of 20:58 GMT today. USD/CAD advanced from 1.0274 to 1.0339 and NZD/USD dropped from 0.8083 to 0.8011, while its daily low was at 0.7965.
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