The Dollar Climbs to a Year High

The dollar rebounded to a one-year high against other major currencies on Tuesday, ahead of an important US jobs report due at the end of the week, which could increase the Federal Reserve’s motivation to start tapering stimulus by next month.

The dollar, which is considered a safe haven, also received support from a wave of selling of shares that extended from Wall Street to Asia.

The Australian dollar, sensitive to risk appetite, was one of the biggest losers, as the Reserve Bank of Australia confirmed that it does not expect to raise interest rates until 2024 after keeping policy unchanged as expected.

The dollar index, which measures the currency’s performance against six other major currencies, rose 0.13 percent to 93.957, moving back towards a peak reached on Thursday at 94.504, the highest level since late September 2020.

The Australian dollar fell 0.34 percent to $0.7263, retreating further from Monday’s four-day high of $0.73045.

The New Zealand dollar fell 0.34 percent to $0.6939, also retreating from a four-day peak of $0.6981.

The dollar rose 0.25 percent against the yen to 111.19, while the euro fell 0.21 percent to $1.15965.

There was little change in the British pound, which reached 1.3612 dollars.