Dollar trades near it's 6-week low; Focus on Fed

Dollar trades near it's 6-week low; Focus on Fed

23 Feb 2021 07:40 AM

The USDINR NDF is currently trading at 72.39/40.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 14,740.

The dollar nursed losses near a six-week low on Tuesday while commodity currencies loitered around multi-year highs, as investors' focus shifted to how U.S. Federal Reserve chief Jerome Powell might respond to resurgent inflation expectations.

The U.S. dollar index traded at 90.019 on Tuesday, just above its lowest since mid-January.

The euro made a small gain to $1.2165 and is poised to re-test resistance around $1.2220. Sterling, which has rallied nearly 3% this year as a speedy vaccine rollout has inspired confidence in the prospect of a British economic rebound, held above $1.40 at $1.4067. The Japanese yen, which has been the worst-performing major currency of 2021 because it is sensitive to tumbling U.S. Treasury prices, steadied at 105.02 per dollar.

Brent crude oil futures rise $1 to $66.24 per barrel.