Dollar index is heading higher today as traders shun riskier assets. Stocks are dropping, as are oil prices. Traders are turning away from riskier assets in favor of safe havens, and that is helping the greenback to some degree.
US dollar is higher against high beta currencies like the euro and the pound today as risk aversion sets in. Stocks and oil are lower around the world, and there are concerns about the global economy.
Greenback is down against the yen, since the yen is considered a bigger safe haven than the dollar. Falling oil prices and other factors are fueling a rally for the yen today. The US dollar is favored against most other currencies, though, and that is one of the reasons the dollar index is seeing some strength after recent weakness.
The dollar has been floundering a bit lately on new expectations that the Federal Reserve will put off rate hikes until later in the year.
At 14:06 GMT the US dollar index is higher, gaining to 94.819 from the open at 94.579. EUR/USD is dropping to 1.1370 from the open at 1.1392. GBP/USD is also lower, dropping down to 1.4198 from the open at 1.4264. USD/JPY is lower, falling to 110.4890 from the open at 111.3350.
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