The dollar received a fresh boost in recent weeks, climbing to its highest level in the year against its rival after spending the second quarter of 2021 on the back foot.
The dollar edged higher after two consecutive sessions of losses as hedge funds ramped up their holdings.
Due to widening concerns about the Chinese property sector, higher U.S yields not driven by a global economic recovery and the negative impact for energy importers, strategist expects more upside for dollar.
The dollar’s gains in recent weeks were more pronounced against some of its top rivals with greenback scaling a 14-month high on the euro and a 19-month peak on the yen last week as markets reckoned U.S interest rates could rise ahead of global peers.
In the early trading hours of today, the euro dipped back below $1.6, at $1.1598 which, is not far from last week’s trough at $1.1563.
Compared to a basket of its rivals, the dollar edged 0.1% higher at 94.04, breaking a two-day losing streak. The offshore Yuan weakened about 0.3%.
Dollar gains has also infused life in the moribund currency volatility markets with a gauge measuring daily swings to its highest levels in 21/2 months at 6.2%.