Dollar Index Heads Lower After Bouncing Earlier

US dollar index is lower, even though the greenback is trading mixed today. The weighting of the euro in the dollar index’s basket of currencies means that the gains by the euro are weighing on the dollar index today. Even though the dollar is lower against the euro, it is still gaining ground against the UK pound and the Japanese yen.

US dollar index is heading lower after bouncing higher off a resistance level earlier. Even though the US dollar is gaining against the pound and the yen, it is losing against other currencies by enough to have an effect on the dollar index. The euro is most heavily weighted in the basket, so the positive economic news coming out of the eurozone, and the boost that’s brought to the 18-nation currency, is a main driver for a lower dollar index.
Today’s reading is raising the ire of some who think that the dollar index is outdated and irrelevant, though. Or that it at least needs some revamping so that the euro isn’t so heavily represented.
At 10:45 GMT the dollar index is down to 85.7240 from the open at 85.7600. EUR/USD is up to 1.2673 from the open at 1.2652. GBP/USD is down to 1.6015 from the open at 1.6050. USD/JPY is up to 107.4460 from the open at 107.1400.

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