Dollar builds on previous day's gains as focus turns to U.S. data
Business
Dollar builds on previous day's gains as focus turns to U.S. data
LONDON/SINGAPORE (Reuters) - The U.S. dollar rose again on Wednesday after jumping the previous day, underpinned by elevated U.S. Treasury yields and a cautious turn that weighed on Wall Street.
Trading was relatively subdued, with Japanese markets shut for a holiday and investors waiting for important U.S. economic releases later in the day, including minutes from the Federal Reserve's December meeting.
The euro was last down 0.2% against the dollar at $1.092, its lowest since Dec. 19. It fell 0.95% on Tuesday in its biggest daily drop since July.
That helped push the dollar index , which tracks the currency against six major peers, up 0.22% to 102.47, building on Tuesday's 0.86% increase.
A drop in inflation and a dovish tilt in the Federal Reserve's December policy meeting fuelled bets for U.S. rate cuts in 2024, toppling the greenback and sparking a rally in Treasuries and stocks in November and December. The dollar index hit a five-month low of 100.61 last week.
Those trends failed to carry over into the New Year, with the S&P 500 and Nasdaq Composite closing lower on their first trading session of 2024, dragged down by big tech names . Treasury yields jumped as prices fell, boosting the attractiveness of U.S. debt and propelling the dollar higher on Tuesday.
