Even though the dollar index is higher today, the greenback is trading mixed against its major counterparts. Interest in risk has some money flowing out of the dollar, while there are some currencies that are floundering in general.
US dollar is gaining against the euro today, which is one of the big reasons that the dollar index is gaining ground today, even though the greenback is down against the pound and commodity currencies like the Aussie and the loonie.
Thanks to a global equity rally, there is a degree of risk appetite on the Forex market. High beta currencies are favored, for the most part, today. However, one exception is the euro. Euro reached a three-week low against the greenback earlier in the session, and is still down. There is talk of the possibility of quantitative easing by the ECB, and that is sending the euro lower.
US dollar is also higher against the Japanese yen today.
At 13:46 GMT the US dollar index is higher, up to 80.0990 from the open at 79.9690. Since euro is heavily weighted in the basket, it is little surprise that the index is much higher, as EUR/USD is down to 1.3791 from the open at 1.3827. GBP/USD is up to 1.6547 from the open at 1.6530. USD/JPY is up to 102.3940 from the open at 102.2600.
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