HomeFinancial MarketsDollar Surges to Five-Month High Following Positive US Economic Data

Dollar Surges to Five-Month High Following Positive US Economic Data

The US dollar skyrocketed to a five-month high on Tuesday as strong US economic data raised bets that the Federal Reserve will need to keep interest rates elevated for longer. Weaker economic data from China and Europe has also raised investor sentiment for the greenback, as have rising US yields and falling stocks.

Measuring the dollar against a basket of major currencies, the Bloomberg Dollar Index jumped 0.5% on Tuesday, bringing the index’s rise since mid-July to 4.5%. Given the recent trajectory of the US economic landscape, Goldman Sachs Group Inc. decided to lower its likelihood of an incoming US recession from 20% to 15%.

Simon Harvey, head of FX analysis at Monex Europe, explained that “the two main drivers of dollar strength, which are higher yields, and weak growth conditions outside of the US have been thrust straight back into the limelight.”

Delta Struggling With Flight Cancellations Following Tech Outage

Delta Air Lines has continued to struggle with flight cancellations following last week's global cyber outage. This came after a software update by global...

Dolce & Gabbana Seeking New Capital Investment

Dolce & Gabbana CEO Alfonso Dolce confirmed that the fashion house is open to seeking new investors as a means of raising capital. This...

Former Nintendo President Claims Video Game Industry Set to Grow

Former Nintendo of America president and COO Reggie Fils-Aimé insisted that the video games industry is set to grow after suffering years of decline....