Currency Buzz: Dollar Index Takes A Breather At Multi-Year Highs

29 Apr 2022 , 01:31 PM

The US dollar index took a breather on Friday, after hitting its highest level in nearly 20 years although the index stays on track for its best monthly performance in nearly a decade. Expectations of aggressive interest rate hikes by Federal Reserve lifted US treasury yields pushing the dollar higher. Besides, Ukraine-Russia war and resurgence of Covid Cases in China bringing back lockdown like situation worsened investors risk appetite and improved appeal for the greenback. Meanwhile, the dollar index extended its gains even as US GDP dropped to -1.4% in Q1 2022 from 6.9% prior, versus the 1.1% forecast. The US dollar index, which hit a two-decade high of 103.93, dropped below the psychological 103 mark and was last at 102.97. However, the index is still up about 5% in April.

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