The US dollar suddenly bounced back from sluggishness on Wednesday in the US trading session. This indirectly halted three consecutive sessions of decline, as concerns about the prospects for global economic growth and rising inflation offset sentiment.
On Tuesday, Powell promised the U.S. central bank. will raise interest rates as high as necessary, including taking rates above neutral, to curb inflation surges that could threaten economic fundamentals.
According to Michael Brown, a market analyst in Caxton in London that yesterday’s risk -taking had begun to subside in the opening of trades. Thus, the demand for the US dollar is again fascinating with increasingly shaky sentiment.
The US dollar index, which measures the US dollar against six major currencies, strengthened 0.25% to a trading level of 103.665.
Brown further, technically it carries a bullish indication for the US dollar index as the US dollar managed to hold above the previous support level at 103.20.
The pound fell 0.6% against the US dollar on Wednesday after data showed British inflation rose to 9%, the highest level in 40 years. With investors reducing their holdings on risky currencies, the Australian dollar is seen as a proxy for declining liquidity of 0.4%. Australian wage growth picked up in the last quarter, prompting investors to reduce their bets on larger increases in interest rates.
The cryptocurrency market is seen to be relatively calm after last week’s market crash. The price of Bitcoin fell about 3% an last trade at $ 29,285.67.
