The Dollar’s Upside Stops Before The Fed Meeting

The dollar’s march towards a 3-1/2-month high was halted on Tuesday, July 27th as risk appetite weakened, while the Australian dollar suffered from further tightening of regulation in China.

The dollar index recorded 92.73, approaching the highest level since early April, 93.19, which is recorded on July 21.

The dollar rose more than 4% from the 2021 lows at less than 90, the level it fell to in late May, as the US Treasury yield fell, forcing investors to reduce bets on the dollar’s decline.

In early trading in Europe today, the euro was trading at $1.1780, close to its low since early April at $1.1752 recorded last week.

The Australian dollar settled at $0.7382, while the New Zealand dollar was unchanged and recorded about $0.7000.

The pound rose above the 20-day moving average and approached a week’s peak at $1.3827, as early data appeared to show a rise in Covid-19 cases in Britain after many restrictions were lifted last week.