US Dollar Heads Lower After Earlier Surge

US dollar is heading lower again following an earlier surge in value relative to its major counterparts. Earlier, the greenback saw gains, especially against emerging market currencies. Now the dollar is pulling back a bit, especially against its major counterparts.

Profit taking is one of the factors contributing to the greenback’s lower performance against its major counterparts right now. Earlier, the US dollar surged a bit against its counterparts, taking strength from weakening emerging market currencies and better economic data.
Now, though, the dollar is lower. Details are emerging of another bilateral agreement between countries ready to cut the greenback out of their dealings. Russia and Egypt are looking to settle their accounts without the use of the dollar; this is another instance of how the greenback is becoming less and less the de facto global currency.
Even with this pullback, however, the dollar is still likely to maintain its relative strength. There isn’t a whole lot for other currencies to base their rallies on.
At 11:31 the US dollar index is down to 94.6670 from the open at 94.9070. GMT EUR/USD is up to 1.1337 from the open at 1.1294. GBP/USD is up to 1.5333 from the open at 1.5241. USD/JPY is down to 119.7650 from the open at 120.2980.

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