Greenback eases, while staying within sight of 14-year peaks
On Tuesday, the evergreen buck eased against a basket of other key currencies, though remained in sight of almost 14-year peaks amid hopes for an interest rate hike next month and also increased fiscal spending under a Trump administration.
The US dollar index, measuring the greenback’s strength against a trade-weighted basket of six crucial currencies, fell 0.32%, reaching 99.71.
On Monday, the index reached peaks of 100.24, a level not observed since December 2015 and if it soars above the peaks of 100.51 hit in December 2015, it would get to its highest value since April 2003.
The greenback was lower against the Japanese yen, with USD/JPY tumbling 0.32% to 108.06, drifting away from Monday’s five-month highs of 108.53.
The common currency also edged up, with EUR/USD ascending 0.45% to 1.0784, thus coming off Monday’s eight-month dip of 1.0708.
The major American currency has been bolstered by hopes that the Fed is on track to increase interest rates already next month.