Currency Buzz: Dollar Retreats After Approaching 96 Mark

3 Jan 2022 , 04:24 PM

The US dollar index commenced the first trading day of the New Year on a positive note, recouping some losses after declining for two straight weeks. The DXY, that measures the greenback against a basket of currencies climbed to as much as 95.94 but eased back later during the day and is currently quoting at 95.78. The dollar gained nearly 7% in 2021, its best annual performance since 2015, supported by an improving U.S. economy and persistent inflation that led to a hawkish turn by the Fed, which is now expected to begin raising interest rates as early as March. The Fed announced that it would end its pandemic-era asset purchases in March and signalled three quarter point interest rate hikes this year.

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