US dollar is trading mixed today, heading higher against some currencies, but losing ground to others. The dollar index is lower today, thanks in large part to a surge in value by the euro.
Dollar index is lower today as the greenback trades mixed against its counterparts. Some of the pullback in the dollar can be attributed to correction. US dollar has been stronger in the last year, and that is starting to put a damper on earnings. Speculation that a too-strong dollar could slow economic recovery has many expecting the Federal Reserve to hold off on raising interest rates.
Also contributing to a lower dollar index today is the fact that the euro is surging. Because the euro is so heavily weighted in the dollar index basket, its strong performance on the heels of the breakdown in Greek bailout talks is bringing the whole dollar index lower.
However, euro strength is expected to be short-lived, and many analysts expect the greenback to continue to gain.
At 13:26 GMT the US dollar index is down to 93.9400 from the open at 94.4620. EUR/USD is up to 1.1414 from the open at 1.1347. GBP/USD is down to 1.5352 from the open at 1.5362. USD/JPY is up to 118.7760 from the open at 118.4590.
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