The U.S. Dollar index rose against a basket of six major currencies by 0.45 percent to end Tuesday’s session in the green at 94.72 after the Federal Reserve Chairman Jerome Powell stated that the Fed was on the road to gradually hike interest rates.
On Tuesday, after Powell’s testimony and declaring that the job market is strong and inflation lingered around 2 percent, the U.S. Dollar instantly witnessed some gains.
Meanwhile, a weaker Euro supported the Greenback where the single currency dropped by 0.42 against the U.S. Dollar to close the session in the red at 1.16602 EURUSD.
Furthermore, in the United Kingdom, the Sterling dropped against the Greenback by 0.89 percent to end the session lower at 1.31155 GBPUSD at the close, due to investors’ expectations of new Brexit challenges. The Sterling has suffered from losses after the government has faced an unanticipated downfall recently.
In terms of the safe-haven assets, the Japanese Yen rose against the Greenback by 0.52 percent to settle at 112.865 USDJPY. Moreover, the Swiss Franc also gained around 0.34 percent against the U.S. Dollar to end the session higher at 0.99999 USDCHF at the close.
Elsewhere in Canada, the Canadian Dollar rose against its U.S. counterpart to gain 0.42 percent to trade higher at 1.31899 USDCAD at the close, boosted by a stronger U.S. Dollar. Meanwhile, Canada’s factory data showed that its sales rose to reach 1.4 percent from 0.5 percent which has limited the gains of the Canadian Dollar.
Regarding the Kiwi Dollar, the currency rose against its U.S. counterpart by 0.09 percent to close in the green at 0.67817 NZDUSD. On the other hand, the Aussie Dollar faced some downturns and fell by around 0.41 percent to settle down at 0.73870 AUDUSD.