US dollar index is lower as greenback falls pretty much across the board. A successful French debt auction is helping the euro, and commodity currencies are getting a boost from higher oil and gold prices.
Right now, events seem to be conspiring against a higher US dollar. Concerns about oil supply are rising, thanks to strikes in Nigeria, as well as a threat from Iran to close the Strait of Hormuz. Things are to the point that both the United States and Great Britain have sent war ships into the area of Hormuz in order to keep the Strait open.
Gold prices are also on the rise, and putting downward pressure on the US dollar. Even with all the uncertainty right now, the greenback is still lower as investors and Forex traders buy riskier assets. US markets are closed today for the Martin Luther King, Jr. remembrance holiday, so volume in general is a little lower.
In the current environment, though, market volatility is high and the situation could change with only a moment’s notice. Any difference in situation could mean gains for the US dollar — or even greater losses.
At 15:57 GMT EUR/USD is higher at 1.2672, up from the open at 1.2636. GBP/USD is up to 1.5319 from the open at 1.5281. USD/JPY is lower at 76.7250, down from the open at 77.0800.
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