US Dollar Strengthens on Uncertainty and Unrest

Greenback is heading higher again, thanks in large part to the uncertainty and unrest that continues to plague the world. Also helping the US dollar is the latest economic news, which is fueling speculation that interest rate hikes could come sooner rather than later.

Dollar index is higher today, and the greenback is gaining against its major counterparts, thanks in large part to uncertainty and unrest in many areas of the world. One of the biggest triggers of uncertainty, though, is the unrest in Hong Kong, where pro-democracy demonstrations are huge — in spite of a tough police crackdown.

There is, of course, still concerns about the unrest in the Middle East, with ISIS (or ISIL) continuing to cause problems. In Europe, Russia remains a concern as the standoff with Ukraine is unresolved still and many Balkan states are nervous.

Greenback offers stability, and with US economic news improving, it also offers the hope of increasing yields as the Federal Reserve contemplates raising rates in early 2015.

At 10:45 GMT US dollar index is up to 85.6950 from the open at 85.6480. EUR/USD is down to 1.2682 from the open at 1.2683. GBP/USD is down to 1.6225 from the open at 1.6238. USD/JPY is up to 109.4700 from the open at 109.2980.

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