US Dollar Maintains a Firm Undertone

Even with a bit of selling off earlier, the US dollar maintains a firm undertone in currency trading today. Even though the dollar is down a bit against the yen, it is higher against its European counterparts, and the dollar index is gaining ground.

US dollar is trading mixed today, but it is higher against its European counterparts, the pound and the euro. Greenback is down against the yen, though, as risk aversion sets in. Earlier, the dollar’s rally had slowed, and the greenback lost some ground. But now the dollar is firming up and making progress.

Part of the earlier drop is to do with the energy agreement between Russia and China that circumvents the need for the US dollar. The idea is to make the dollar less prominent in energy transactions. That move weighed a bit on the greenback. However, the dollar still has a strong undertone as the economy improves and as the Federal Reserve gets closer to raising rates.

At 11:51 GMT the US dollar index is up to 87.5370 from the previous close at 87.5310. EUR/USD is down to 1.2457 from the open at 1.2476. GBP/USD is also lower, dropping to 1.5837 from the open at 1.5918. USD/JPY is down to 115.2660 from the open at 115.4760.

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