By: Barbara Zigah
With investors’ winding up their short positions, the U.S. Dollar rose to a 3-month peak in Asian trading today, following the Federal Reserve’s upbeat message which lent support to the greenback’s recent rebound. The U.S. Dollar Index, a measure of the U.S. currency’s value versus a group of major currencies, peaked at 77.609 .DXY, the highest trade since September. Some market players insist that the greenback’s rebound isn’t indicative of a long-term trend, but merely related to year-end unwinding of short positions in the U.S. Dollar. Others, however, are confident that the Fed’s message presages further recovery of the U.S. economy.
The U.S. Dollar also gained broadly in individual trading. As reported at 4:20 p.m. (JST) in Tokyo, versus the single currency Euro, the U.S. Dollar gained better than 1% to trade at $1.4369 on the EBS trading platform, before settling back at $1.4401. Against the Australian Dollar, the greenback gained nearly 1% to hit a new 2-month high, trading at $0.8900. According to one trader, there’s strong interest in dollar buying, specifically against the Australian Dollar and the Euro, suggesting that the U.S. currency may have started another uptrend before the end of the year.
U.S. Dollar Gains Broadly on Upbeat Fed Statement
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.