Dollar holds near 18-month high as geopolitical risks rise
SPY•The dollar held near its highest level since April last year, with the US dollar index at 102.56 after closing up 0.3% on Monday. Renewed attacks on energy infrastructure in the Middle East and Ukraine added to geopolitical risks.
1. Dollar supported
The dollar held steady in subdued Asian trading on Tuesday after a US market holiday. The US dollar index was at 102.56, near its highest levels since April last year. Higher relative interest rates, stronger US growth and demand for defensive dollar exposure were cited as support for the currency.
2. Other currencies and assets
The euro was flat at $1.1159 and the pound was steady at $1.3209. The dollar was 0.1% weaker against the yen at 158.435 after Japanese wholesale prices rose 6.8% in the year to September, below the 7.6% median forecast. The Australian dollar was little changed after the Reserve Bank of Australia’s minutes said inflation could prove more stubborn than assumed, while Brent crude fell 0.9% to $105.74.
