Dollar Index Continues to Climb as Risk Aversion Rises

The dollar index continues to climb, remaining above the 80.0000 level, as risk aversion continues to be the story. In many cases, dollar strength is mostly due to the weakness of currencies like the euro and the Canadian dollar — even though the dollar is down against other individual currencies like the yen.

Right now, the US dollar index is on the rise, and a lot of that increase is coming from euro weakness. The dollar index is a weighted basket of currencies, with the euro receiving the largest weight. With the 18-nation currency performing so poorly, it’s no surprise that the entire dollar index is getting boost, in spite of the fact that the greenback is down against both the yen and the pound.
The US dollar is making headway against high beta currencies like the euro and the Canadian dollar, thanks in large part to concerns about the market. Stocks continue to flounder today, and there are still worries about tensions in Ukraine and what that could mean in terms of destabilizing Europe.
At 13:03 GMT the US dollar index is up to 80.0920 from the open at 80.0040. EUR/USD is down to 1.3703 from the open at 1.3709. GBP/USD is up to 1.6820 from the open at 1.6789. USD/JPY is down to 101.5390 from the open at 101.5875. USD/CAD is up to 1.0886 from the open at 1.0885.

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