U.S. Dollar Remains Lower on Risk Aversion

The dollar probed recent lows on Tuesday as risk aversion amid the fall in global equities favored peers such as the yen, with uncertain timing about the Federal Reserve’s interest rate hike further undermining the U.S. currency’s appeal.

The dollar index was down 0.2 percent at 85.332, well below the four-year high of 86.746 struck earlier this month when a Fed rate hike in the near term seemed more likely.

The dollar crawled up 0.2 percent to 107.095, but remained in close range of a one-month low of 106.76 hit earlier in the session.  The greenback suffered a heavy blow overnight against the safe-haven yen as Wall Street took large hits, with the S&P 500 sliding to a five-month low.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.