US dollar continues upward trend on Monday

US dollar continues upward trend on Monday

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Monday morning brought smiles on the faces of the US dollar investors as the greenback once again climbed up some notches in the Asian markets. It continued its rising streak from the previous week. 

Meanwhile, investors are wary of the asset tapering by the U.S. Federal Reserve despite the increasing number of COVID-19 cases globally. 

The US Dollar Index climbed up to 92.668 by 0.10 per cent at 2:43 AM GMT (10:43 PM ET). It extended the contract to December 21 on September 12. The USD/JPY pair jumped to 109.95, up by 0.02 per cent. 

However, the Australian dollar once again struggled to go over the mark of $ 0.74. The AUD/USD pair increased to 0.7359 by 0.05 per cent. On the other hand, the NZD/USD pair skidded to 0.7108, losing 0.07 per cent. It is battling to come over the months-long range despite the fact that New Zealand’s Reserve Bank is preparing to raise the interest rates. 

In the offshore trade, the USD/CNY pair inched up to 6.4534 by 0.15%. Notably, Wednesday will witness the release of several data, including fixed-asset investment and industrial production. 

On the other side, the GBP/USD pair edged up to 1.3836 by 0.02 per cent. However, some investors displayed optimism towards the US currency. 

In a statement, senior currency strategist of the National Australia Bank, Rodrigo Catril, said that a couple of dynamics favoured the dollar. He added that even the vaccinated nations like the UK and Singapore saw a spike in COVID-19 cases. 

Furthering his argument, he said that consumers were still in a dilemma and cautious that posed the challenge in re-opening. Moreover, the bottleneck restricted the economy to recover with gusto. Furthermore, the rising coronavirus cases beckoned the introduction of some restrictions again. Also, the continuous signal by the Fed over the implementation of asset tapering resulted in an issue. 

Interestingly, the US is gearing up for releasing the consumer price index (CPI) data on Tuesday. Meanwhile, Patrick Harker, Philadelphia Fed President, emphasised the asset tapering sooner. 

In other news, oil prices jumped on Monday, touching a week’s high. The Brent crude hiked to $73.40 by 0.7% or 48 cents. The US WTI edged up to  $70.21 a barrel, adding 49 cents or 0.7 per cent. 


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