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2 Jan 2015
US dollar index rises to march 2006 levels
FXStreet (Mumbai) - The US dollar has strengthened across the board during the Asian session today as the relative monetary policy expectations from the major central bankers seem to dominate market sentiment.
The US dollar index rose to 90.95, the highest level since March 2006 today, extending the stellar 13% rally seen in 2014. Moreover, the relative outperformace of the US economy coupled with the hawkish expectations of the Federal Reserve (Fed) continue to support the US dollar.
The EUR/USD weakened closer to the July 2012 low of 1.2042 today; down0.43%, while the USD/JPY rose back above the 120.00 levels; up 0.57%. GBP/USD has weakened 0.21% to 1.5545, while the USD/CHF gained 0.43% to 0.9976 levels. The Antipodeans – AUD/USD and NZD/USD – have weakened 0.60% each.
Moreover, the monetary policy divergence between major central bankers got underscores as both the European Central Bank (ECB) President Draghi and the Bank of Japan (BOJ) Governor Kuroda, in newspaper interviews, expressed readiness to do more if required at the start of the new year.
On the contrary, the market widely expects the US Federal Reserve (Fed) to hike rates sometime in the middle of this year.
The US dollar index rose to 90.95, the highest level since March 2006 today, extending the stellar 13% rally seen in 2014. Moreover, the relative outperformace of the US economy coupled with the hawkish expectations of the Federal Reserve (Fed) continue to support the US dollar.
The EUR/USD weakened closer to the July 2012 low of 1.2042 today; down0.43%, while the USD/JPY rose back above the 120.00 levels; up 0.57%. GBP/USD has weakened 0.21% to 1.5545, while the USD/CHF gained 0.43% to 0.9976 levels. The Antipodeans – AUD/USD and NZD/USD – have weakened 0.60% each.
Moreover, the monetary policy divergence between major central bankers got underscores as both the European Central Bank (ECB) President Draghi and the Bank of Japan (BOJ) Governor Kuroda, in newspaper interviews, expressed readiness to do more if required at the start of the new year.
On the contrary, the market widely expects the US Federal Reserve (Fed) to hike rates sometime in the middle of this year.