US Dollar heading Towards biggest Weekly Rise in 4 Months

The US dollar extended its gains, and heading towards its largest weekly gain in nearly four months as an overnight drop in US tech stocks, which rose significantly, fueled a bout of risk aversion in global markets.

Nasdaq index decline, as it fell nearly 5% during the session after closing and S&P 500 index at record highs.

The dollar’s ​​rise this week comes after weeks of losses incurred that saw the US currency drop to its lowest level since April 2018 at 91.74 on Tuesday after the US Central Bank revised its policy framework last week, allowing interest rates to remain low for longer periods, which is a negative for the dollar. .

Against a basket of currencies, the dollar traded at 92.774 in early London trade. On a weekly basis, the dollar index is up 0.6%, the largest weekly increase since mid-May.

The rally of the dollar halted the rally of the euro, which briefly reached its highest level in more than two years at over $ 1.20 this week. The single European currency traded steadily at $ 1.1845 today.

The Australian dollar settled at $ 0.7277 as it found support after the acceleration of domestic retail sales in July.