After New Year holiday on Wednesday Dollar Index was higher as investors flocked to risk-averse assets on fears of a global slowdown. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.6% to 96.30.
GBP/USD slumped 1% to 1.2619 after activity in the UK manufacturing sector jumped to a 6-month high in December, as companies prepare for the uncertainty of a hard Brexit, IHS Markit said in its monthly report.
The euro was also down, with EUR/USD dipping 1% to 1.1348. AUD/USD fell 0.70% to 0.7003. The dollar was down against the safe-haven Japanese yen, with USD/JPY shedding 0.3% to 109.32.
Wall Street was little changed on Wednesday, clawing back from losses of more than 1 percent earlier, as gains in energy and bank stocks helped offset worries about a global economic slowdown.
Meanwhile, the U.S. government remains closed and while Congress is expected to meet on Wednesday, there is no indication of when the shutdown will end soon. A tweet from U.S. President Donald Trump late on Tuesday suggested he could be open to deal.
Comments