The US dollar extended its slide lower at the opening of the European session as improved market sentiment prompted investors to shift to riskier currencies.
Against most major currencies, the dollar index, which measures the greenback’s strength, traded dismal at around 104.06.
The move to rescue First Republic Bank in the United States has boosted sentiment globally, prompting a surge in the Aussie and New Zealand dollars.
The Aussie dollar and kiwi rose 0.8% against the greenback, trading firmly around 0.6700 and 0.6240 respectively.
European currencies also rose following the announcement of Credit Suisse securing a $54 billion loan from the Swiss National Bank (SNB).
This pushed the euro to rise, in addition to being supported by the European Central Bank’s (ECB) decision to raise interest rates by 50 basis points.
The pound, meanwhile, continued its moderate gains amid the lack of key data from the UK to spur more aggressive moves in the currency.
The yen, on the other hand, remains high, indicating that investors’ concerns have not yet been completely eliminated, causing them to continue to hold on to safe-haven assets.
In the New York session, US consumer confidence sentiment data will likely be the next focus for investors before the week’s trading closes.
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Title Of post: What Will Happen to the USD Ahead of the Weekend?
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