The US Dollar Index struck a 2-week peak as FX traders seek out the Dollar’s relative safety while European equities are in distress. Besides the global equities selloff, the Dollar’s rise has gained some additional momentum from growing speculation of a possible three rate increases this year from the Federal Reserve Bank. One currency strategist from Germany said that the dollar’s relatively good performance during the recent turmoil in the world’s equity markets has helped to determine market sentiment. The US Dollar Index is currently trading at 90.471 .DXY, up 0.24%.
As reported at 11:16 am (GMT) in London, the EUR/USD was trading at $1.2235, down 0.16%; the pair has ranged from a session trough of $1.22238 to a peak of $1.22950. The GBP/USD is trading at $1.3894, a gain of 0.16%; the pair earlier hit a peak of $1.3918 while the session low is at $1.3844. The USD/JPY is trading at 109.69 Yen, a gain of 0.30% and off the session peak of 109.784 Yen.
Kiwi Dollar Slides
Among developed economies, the New Zealand Dollar was the market’s biggest mover. The NZD/USD was trading at $0.7244, down 0.0433%; the pair had earlier hit a 4-week trough with a 0.6% loss when it traded at $0.7192, only to fall further to a session low of $0.7175. Analysts blame the RBNZ’s decision to keep interest rates at the current historical low of 1.75%.