Sharjah24 – Reuters: The U.S. dollar edged back toward a one-year high versus major peers on Tuesday ahead of a key payrolls report at the end of the week that could boost the case for the Federal Reserve to start tapering stimulus as soon as next month.
The safe-haven greenback was also supported by an equity sell-off that spread from Wall Street to Asia.
The risk-sensitive Australian dollar was among the biggest decliners, with the Reserve Bank of Australia reiterating it doesn't expect to raise interest rates until 2024 after keeping policy steady, as expected.
The U.S. dollar index, which measures the currency against six rivals, rose 0.16% to 93.987, moving back toward Thursday's peak at 94.504, its highest since late September 2020.
The index had rallied as much as 2.8% since Sept. 3 as traders rushed to price in tapering this year and possible rate rises for 2022.
The dollar has also benefited from haven demand amid worries spanning the risk of global stagflation to the U.S. debt ceiling standoff.
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