Currency Buzz: DXY Hovers Near 18 -Month Highs

31 Jan 2022 , 11:50 AM

The US dollar continues to hold at higher levels and stays close to an 18-month high of 97.44 hit last week as investors braced for upcoming interest rate hikes from the Federal Reserve. Besides, the greenback was supported by investors seeking safety amid a sell-off in riskier assets. The Federal Reserve indicated last week that it would likely hike interest rates in March and begin reducing its balance sheet soon after to combat inflation, with markets pricing in five quarter-point rate hikes this year. Meanwhile, data showed on Thursday that the US economy grew much more than expected at 6.9% in the fourth quarter. At the time of writing the dollar index, that tracks the dollar against a basket of currencies was seen at 97.11.

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