US dollar is pulling back today, now that the euro is gaining ground. Greenback is mostly lower against its major counterparts, and the weighting in the basket of currencies that make up the dollar index is bringing the US currency lower.
The US dollar index is heading lower today, thanks in large part to a recovery from the euro. The 19-nation currency was lower earlier but is now gaining against the dollar. The euro is the currency with the heaviest weight in the dollar index basket.
Forex traders seem to be consolidating their dollar positions as they wait for next week’s Federal Reserve meeting. Speculation about what might — or might not — happen with the Fed Funds Rate is raging right now and there is a great deal of interest in when a hike will take place.
For now, the greenback is trading mixed, but mostly lower against its major counterparts, although some predict that in the long run, dollar strength is still likely.
At 13:41 GMT the US dollar index is down to 95.992 from the previous close at 96.012. EUR/USD is higher, moving up to 1.1214 from the open at 1.1207. GBP/USD is up to 1.5396 from the open at 1.5370. USD/JPY is up to 120.6430 from the open at 120.5180.
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