The dollar index gained strength Wednesday after the latest insights from the Federal Reserve showed a divided stance by the committee over the progress made on inflation. At least two officials said they’re willing to consider interest-rate hikes in efforts to stamp out stubborn inflation. Previously, Fed policymakers had communicated they’re looking to slash interest rates three times this year.
The fresh yet gloomy outlook rattled the trading and investing landscape and the looming uncertainty sent market participants to the safety of the greenback. The dollar added about 0.5% to its valuation against a basket of six rival currencies. The greenback’s index jumped from 104.50 to 105.00 and remained well-bid early Thursday as the forex space is still trying to assess the way forward.
The American currency has been in a steady upside trend for the past week. Over this time span, it has jumped about 1% in a rebound move from the 100-day moving average to the 50-day moving average. Along the way, it crossed the long-term trend indicator, the 200-day moving average, potentially suggesting a bullish momentum taking shape.
The fresh yet gloomy outlook rattled the trading and investing landscape and the looming uncertainty sent market participants to the safety of the greenback. The dollar added about 0.5% to its valuation against a basket of six rival currencies. The greenback’s index jumped from 104.50 to 105.00 and remained well-bid early Thursday as the forex space is still trying to assess the way forward.
The American currency has been in a steady upside trend for the past week. Over this time span, it has jumped about 1% in a rebound move from the 100-day moving average to the 50-day moving average. Along the way, it crossed the long-term trend indicator, the 200-day moving average, potentially suggesting a bullish momentum taking shape.
