US Dollar Index Pushes Higher

Even though there is some weakness to the dollar today, the dollar index is pushing higher. This is due, in large part, to the greenback’s gains against the euro (which is heavily weighted in the dollar index) and the Canadian dollar.

The dollar has been struggling a little bit lately, thanks to disappointing economic data. Concerns about a slowing economic recovery have some thinking that maybe the Fed won’t raise rates as soon as thought, or that perhaps the Fed needs to return to quantitative measures.
However, the US economy is still in recovery mode, and the dollar still retains much of its relative strength. Today, after seeing some drops earlier, the greenback is trading mixed, while the dollar index heads higher. The nature of the dollar index, with its heavy emphasis on the euro, means that the euro’s losses today are helping the greenback in its performance against the basket. But, individually, the greenback is still struggling against some of its major counterparts.
At 11:48 GMT the US dollar index is up to 93.8370 from the open at 93.7720. EUR/USD is lower, falling to 1.1450 from the open at 1.1483. The euro is the most heavily weighted currency in the dollar index basket. GBP/USD is up to 1.5196 from the open at 1.5168. USD/JPY is down to 117.4800 from the open at 117.5140. USD/CAD is up to 1.2433 from the open at 1.2396.

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