The U.S. Dollar advanced to a 13-month high on Tuesday

The U.S. Dollar advanced to a 13-month high on Tuesday

August 16, 2018 0 By Ali Hwary

The U.S. Dollar advanced to a 13-month high on Tuesday versus a basket of major currencies as traders increased holdings of the U.S. currency on worries about the fallout from the Turkish lira’s recent fall.

The U.S. Dollar index which measures the strength of the U.S. Dollar against a basket of six major currencies surged to touch 96.79, the highest Since June 2017; the Index rose by 0.4 percent on Tuesday to close at 96.67.

While the lira rebounded from an all-time low, concerns about the European banks’ exposure to the country spurred selling of the Euro, sending it to 13-month lows against the Greenback and Swiss franc.

The Turkish lira has lost more than 40 percent of its value against the U.S. Dollar this year, hit by worries over President Tayyip Erdogan’s calls for lower interest rates and fraying ties between the United States and Turkey, a NATO ally.

Sanctions forced by Washington on Ankara have fueled anxiety about Turkey’s economy, already bogged down by double-digit inflation. The currency was reinforced by remarks from Turkish finance minister Berat Albayrak, who told a news conference the lira will strengthen.

The Euro declined against the Greenback to 1.1330, the lowest since July 2017, before closing Tuesday Session down by 0.7 percent at 1.1343.

In the United Kingdom, the Sterling pound lost against the U.S Dollar on Tuesday; the GBPUSD fell by 0.36 percent to close the session at 1.2720.

Regarding safe-havens, the Japanese Yen weakened versus the Greenback on increased trade tensions as well as traders increasing their holdings of the U.S. currency on worries about the fallout from the Turkish lira’s recent fall.

The USDJPY surged by 0.4 percent to trade 111.14 at the close. Meanwhile, the U.S. Dollar also rose versus Swiss franc with the USDCHF up by 0.12 percent to trade at 0.9941 at the close.

Regarding the precious metals, the Gold traded flat on Tuesday at 1194, after falling to one-year low at 1192.00 Dollar per ounce.

In commodity stocks, the Canadian loonie strengthened against the US Dollar on Tuesday, despite a decline in oil prices and broad strength in the Greenback, Canada’s most significant export; The USDCAD lost by 0.57 percent to trade at 1.3056 at the close. Meanwhile, U.S Crude Oil traded lower on Tuesday losing 1.1 percent, to end the session at 66.65 Dollar per barrel.

Furthermore, both Aussie and Kiwi declined versus their U.S counterpart to close the session at 0.7238 AUDUSD and 0.6571 NZDUSD.

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