Currency Buzz: Surging Risk Aversion Lifts Dollar Index

2 Aug 2022 , 03:19 PM

The US dollar index was in the green for the first time in five days amid rising risk aversion that sent investor flocking back to the safe haven dollar for respite. Asian equities faced heavy selling pressure on Tuesday amid escalated geopolitical tensions between the US and China over House Speaker Nancy Pelosis visit to Taiwan and mounting fears of a global recession. Meanwhile, possibility of a global slowdown just grew stronger after the global manufacturing sector started the third quarter on a weak footing, as per J.P.Morgan Global Manufacturing PMI. The composite index produced by J.P.Morgan and S&P Global in association with ISM and IFPSM-fell to a two-year low of 51.1 in July, down from 52.2 in June. The darkening economic backdrop also hit business confidence, with optimism dipping to its lowest level since May 2020. The dollar index that measures the greenback against a basket of currencies rebounded to 105.39, after having fallen to a one month low under 105 mark in early trades. Powered by Commodity Insights