US Dollar Weakens, But Not as Much as Expected

Markets are clearly risk on today, but the US dollar isn’t weakening quite as much as expected. While the dollar is slightly lower against some of its major counterparts, the performance isn’t enough to sink the dollar index yet. Even with the risk appetite, there is still some dollar strength.

The latest news out of China and Syria is helping to promote a bit of a risk on environment in the markets today. Stock markets are logging gains as China reports better than expected economic data, and as a diplomatic solution to the Syria situation begins to look feasible.

With stock markets getting a boost, it seems reasonable to expect the greenback to weaken a bit. However, the US dollar isn’t dropping as fast as some expected. Clearly, there are still some issues to contend with as the dollar relates to other currencies. Besides, gold and oil are lower, and that is providing support to the greenback.

At 14:53 GMT the US dollar index is managing to hang on to gains. The dollar index is up to 81.85 from the previous close at 81.81. EUR/USD is up to 1.3266 from the open at 1.3254. GBP/USD is also higher, rising to 1.5720 from the open at 1.5696. USD/JPY is higher, at 100.4400, which is up from the open at 99.5805.

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