The US dollar is gaining ground. It is benefiting from demand for safe-haven assets, supported by escalating tensions in the Middle East. Expectations that the US Federal Reserve could raise interest rates are also helping the currency.
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Dollar Index Rises While the Euro Weakens
The dollar index, which measures the value of the US dollar against a basket of six major global currencies, was up 0.2 percent at 99.45 points around 17:45 CEST. The euro lost 0.2 percent against the dollar and traded at 1.1605 USD.
The Japanese yen fell today to the closely watched level of 160 yen per dollar, a threshold at which authorities have previously intervened to support the currency. At the same time, the dollar was up 0.1 percent against the yen at 159.99 JPY.
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Markets Watch the Middle East and the US Rate Outlook
Diplomatic talks between Iran and the United States remain at a deadlock. During periods of conflict escalation, the dollar has tended to strengthen thanks to demand for safe-haven investments and the lower sensitivity of the United States to energy shocks. The yen, on the other hand, tends to weaken when oil prices rise due to Japan’s dependence on imported energy.
The number of job openings in the United States rose in April by the most in five years, according to data released on Tuesday. Gustav Helgesson, an analyst at SEB, said the figure could be very important for the dollar, as it may prompt the Fed to reconsider its more accommodative stance and open a debate about possible rate hikes.
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Source: ČTK
