The US Dollar index is climbing again, heading toward the 100 level again. With the Federal Reserve expected to hike interest rates later this year, and with the greenback remaining the dominant currency in the world, there’s little to slow it down.
Yesterday, the US dollar index hit an 11-year high. Last month, the dollar index did touch above 100, but it fell back quickly. Other than that day last month, it’s been 12 years since the dollar had hit such a high mark. The dollar index appears to be heading back toward 100, thanks to recent developments.
The Federal Reserve is expected to boost interest rates later this year. While the hike might not come as quickly as some wish, it’s still a strong likelihood, and that has many looking to get into the dollar now. Greenback remains the world’s dominant currency. With the eurozone still struggling, the United Kingdom recovering at a slower pace, and a slowdown in China, there aren’t many other currencies to challenge the dollar’s supremacy.
At 12:21 GMT the US dollar index is up to 99.5670 from the open at 99.0140. EUR/USD is lower, falling to 1.0579 from the open at 1.0659. GBP/USD is down to 1.4607 from the open at 1.4713. USD/JPY is lower, though, falling to 120.3940 from the open at 120.5770.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.