US dollar is heading higher today, gaining as the rush for global liquidity sends other currencies down. Greenback is also finding support from some of its better than expected economic data — which also happens to indicate that it is in better shape than some other currencies.
US dollar index remains firmly above the 83.00 mark today. Dollar index is finding support as other central banks rush to liquidity. Rate cuts in India, South Korea, and Australia are all indicating that the global economies are looking to add some stimulus. Additionally, the fact that the PBoC lowered its reference rate (sending the yuan down against the US dollar) is also a factor.
Gold prices continue to fall, and that is providing support to the greenback as well. Better than expected economic data also has many speculating that the Federal Reserve will ease some of its stimulus measures, even as other economies continue to attempt to keep their quantitative easing programs in place.
At 13:29 GMT the US dollar index is up to 83.3130 from the open at 83.1670. EUR/USD is down to 1.2968 from the open at 1.2975 and off the high at 1.3030. GBP/USD is down to 1.5259 from the open at 1.5299. USD/JPY is down to 101.7180 from the open at 101.8250, moving off yesterday’s surge to above 102.0000.
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