Dollar rebounds!
The dollar is gaining as 2023 gets underway!
The WSJ Dollar Index, which measures the greenback against a basket of currencies, climbed Tuesday, with the dollar making sizable advances against the euro, the Swiss franc, and the Australian dollar among others.
Tweet on dollar rebound
The greenback rose against a basket of currencies,with the dollar making sizable advances against the euro, the Swiss franc, and the Australian dollar among others.#USD #Currency pic.twitter.com/Ykip0ihXKS
— The_Journalbiz (@the_journalbiz) January 3, 2023
Dow Jones chart on dollar exchange fluctuation
The gauge recently stood about 0.6% higher, paring some earlier gains. The index had risen about 0.2% Monday.
The dollar rallied sharply in 2022 but began to backtrack late in the year as investors bet that U.S. inflation was slowing.
The exact cause of the greenback’s new-year gains wasn’t clear. Investors often buy the dollar as a safe asset in times of uncertainty. Yet stock futures gained Tuesday, typically seen as a sign of optimism, and bond yields declined, which usually points to a weaker currency.
Speculative traders may be betting that the dollar will strengthen against the euro in the coming months, he said. The euro has just notched its largest quarterly percentage gain against the greenback since 2010.
