After the Dollar’s worst run in several years, the greenback recovered versus its major peers, especially the Euro, but also against a weighted basket of rivals. Despite many banking forecasts which saw the Dollar hitting and moving beyond parity with the Euro, volatility during April’s second half pushed the Dollar more than 6% lower versus the common currency Euro. That effectively put an end to the greenback’s long-term rally as investors’ doubts grew on the recovery of the American economy. Nonetheless, many currency analysts do see the correction as a temporary one and expect the Dollar to recover.
As reported at 11:12 am (BDT) in London, the EUR/USD was trading at $1.1111; the session low was set at $1.1066, well off last week’s 2-month high at $1.1290. The US Dollar Index, used to assess the greenback’s strength relative to its major peers, was trading at 95.6210 .DXY, a gain of 0.15%.
Aussie Dollar Advances on RBA Promise
Down under, the Australian Dollar edged notably higher after the central bank indicated that, though it was at the present time cutting interest rates by another 25 basis points, this rate cut might in fact be the end of the cycle. The AUD/USD had initially fallen after the announcement to a session low of $0.7791, but investors pushed the pair higher to $0.7871 currently, on anticipation that there would be no additional easing from the Reserve Bank of Australia.