US Dollar Back in Demand as Stocks Falter

US dollar is back in demand after a bit of earlier weakness today. Stocks are faltering a bit, especially the S&P 500, which is below the swing top seen in May. With risk aversion on the rise, the greenback is demand and gaining against its major counterparts.

While US stocks are a little higher in trading, they aren’t doing that well. Indeed, they are struggling a bit, with the S&P 500 moving a little below the swing top achieved in May. Additionally, doubts about the US economy’s relative strength seem to be fading into the background a bit. Dollar had lost some ground earlier, but now the greenback has the upper hand against its major counterparts.
Risk aversion is making a bit of an appearance right now, and that is weighing on the euro and the pound. With the US economy still recovering better than European economies, and with the possibility of a taper in the Federal Reserve‘s asset purchase program still being discussed, the greenback is finding some support.
At 15:05 GMT the dollar index is up to 81.4040 from the open at 81.1820. EUR/USD is lower, dropping to 1.3296 from the open at 1.3321. GBP/USD is down to 1.5484 from the open at 1.5490. USD/JPY is higher, rising to 96.5500 from the open at 96.3235.

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