U.S dollar ignores red flags, surge against major currencies

The American dollar continued its bullish run for 48 hours, even as currency traders raised concerns over rising tensions between the U.S and China.

The U.S dollar Index rose to about 0.285% to 99.85, at 11.20 am local time, against major currencies. It is close to reaching its two-week high of 100.83 last month.

The American dollar’s role as a safe-haven asset has been in the news for several days. However, Charalambos Pissouros, a senior market analyst at JFD Group, told Reuters that growing risk sentiments may put pressure on the dollar. He said, “Investors have turned their gaze back to the easing of the ‘stay at home’ measures … with the slowdown in both infected cases and deaths helping sentiment.”

In addition, President Trump had earlier threatened tariffs, or even going back on America’s debt obligations, as potential reprisal measures against China, though the Chinese continue to deny America’s accusations that COVID-19 originated in a Wuhan lab.

The American Dollar Index surge looked like it had slowed down from the previous week, as currency sellers failed to break the 101.00 resistance zone.

U.S dollar index shows that continual strength above the 98.80 zones could see the American index surging above the 100 resistance level.

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