The US dollar rallied versus a basket of currencies Tuesday, on track for its best quarter since 2008, as the diverging outlook for monetary policy in the United States bolstered the currency.
The greenback was still below its highs touched earlier in March, which has given back some momentum over the last couple of weeks following the Federal Reserve implied a more cautious outlook for the economic growth.
But the currency has been backed by projections the US central bank would begin tightening monetary policy later this year.
The dollar traded at $1.0791 per euro. Against the Japanese yen, the currency was at ¥120.17.
The US dollar’s topside would likely be constricted as “a recent drop in U.S. bond yields may help temper the greenback’s gains versus the yen for now,” said Satoshi Okagawa, Senior Global Markets Analyst at Sumitomo Mitsui Banking Corporation.
The material has been provided by InstaForex Company – www.instaforex.com