The dollar rose against a basket of currencies, on Tuesday, and approached the highest level in two months that it had recorded last week, as traders await the meeting of central bankers in Jackson Hole this week.
price movements
The dollar index, which measures the performance of the greenback against six other major currencies, rose 0.3 percent to 103.58.
The index approached the highest level in two months, when it scored 103.68 last week, because concerns about the Chinese economy and bets on the continued rise in US interest rates led to the rise of the green currency.
Risk assets were hit last week, and US Treasury yields rose to near a 16-year peak as investors feared slowing economic growth in China and dealers prepared to keep US interest rates high for a longer period.
Traders are watching the BRICS summit of major emerging economies comprising Brazil, Russia, India, China and South Africa in Johannesburg for any news of Chinese stimulus.
General movements in the currency markets were expected to be limited ahead of Federal Reserve Chairman Jerome Powell’s speech at the Central Bank Forum in Jackson Hole, Wyoming, scheduled for August 24-26.
The yen remained under pressure as traders watched for any signs that the Japanese government is ready to intervene to support the currency, as it did last year.
The dollar fell 0.22 percent against the yen, but not far from the nine-month high it hit last week.
For a brief period, the Chinese yuan rose to its highest level in a week before weakening again in light of the continuing concerns that the state of the economy will affect the currency.
The pound sterling fell 0.2 percent today, Tuesday, and did not find support from the moderate rise in risk appetite.
In cryptocurrencies, Bitcoin fell 0.48 percent to $26,000, approaching the lowest level in two months it recorded last week, at a time when the general mood remained lukewarm in the digital currency market.
2023-08-22 16:27:39
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