The dollar is finding it difficult to extend its gains

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The dollar tried to extend its gains today, Wednesday, amid talk about a possible US interest rate hike and a wave of tech stocks selling undermining risk appetite.

 

Tuesday’s recovery in the dollar pressured the euro, which fell to $ 1.2021 and threatens to break an important support range between $ 1.1995 and $ 1.2000.

 

Against a basket of currencies, the dollar was little changed near 91.21, but it is far from its lowest level in two months, which it recently struck at 90.422. The dollar needs to overcome the resistance at 91.425 to continue its recovery.

 

The recovery came after US Treasury Secretary Janet Yellen’s comments that there might be a need to raise interest rates to prevent the economy from overheating.

 

Later, the comments played down the significance of the comments, but the simplest sign of tightening monetary policy strongly affects the markets that have become so dependent on monetary stimulus.

 

The impact was evident on the shares of large-cap technology companies that suffered heavy losses overnight, sending the Nasdaq index down 1.88 percent.

 

Trading was limited in Asia due to a holiday in Japan and China, but the New Zealand dollar rose to $ 0.7170 after the country’s jobs data came in stronger than expected.

 

The dollar settled against the Japanese yen at 109.31 yen.

Source: Reuters

The article The Dollar finds it difficult to sustain its gains was written in the Stock Exchange newspaper.