US dollar index is higher today, thanks in large part to continued risk aversion. The latest chain of events in China and the Middle East are making investors and traders skittish, and they are turning to safe haven currencies.
The US dollar is still considered the most stable currency in the world, and Forex traders are turning to it today as stock markets around the world continue to drop.
Dollar index is higher today, due largely to the greenback’s performance against the euro and the pound. The dollar is down against the yen and the loonie today, but the euro and pound have higher weights in the dollar index basket.
For now, dollar strength is expected to continue, especially if the Federal Reserve continues to increase interest rates over time. Even a gradual increase is likely to result in more dollar strength in the medium term. For now, though, the focus is on the short term, and what’s happening with economies and markets around the world.
At 14:11 GMT US dollar index is up to 99.323 from the open at 98.843. EUR/USD is down to 1.0744 from the open at 1.0829. GBP/USD is down to 1.4683 from the open at 1.4723. USD/JPY is down to 119.1140 from the open at 119.4270. USD/CAD is down to 1.3927 from the open at 1.3940.
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