U.S. Dollar Moves To The Upside Amid Sell-Off On Wall Street

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After moving to the downside on Tuesday, the value of the U.S. dollar has shown a notable rebound during trading on Wednesday.

The U.S. dollar index has given back some ground after reaching an intraday high of 90.88 but is currently up 0.5 percent at 90.61.

Currently, the dollar is trading at 104.11 yen compared to the 103.62 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.2114 compared to yesterday’s $1.2160.

The greenback has benefited from its appeal as a safe haven amid the sell-off seen by stocks on Wall Street.

Concerns about the impact of new, more contagious coronavirus strains weighed on stocks along with uncertainty about the prospects for more stimulus under President Joe Biden.

Worries about recent speculative trading by retail investors also weighed on Wall Street amid continued spikes by heavily shorted stocks.

In U.S. economic news, a report released by the Commerce Department showed new orders for manufactured durable goods rose by much less than expected in the month of December.

The Commerce Department said durable goods orders edged up by 0.2 percent in December after surging by an upwardly revised 1.2 percent in November.

Economists had expected durable goods orders to increase by 0.9 percent compared to the 1.0 percent jump that had been reported for the previous month.

Excluding a pullback in orders for transportation equipment, durable goods orders climbed by 0.7 percent in December after advancing by 0.8 percent in November. Ex-transportation orders were expected to rise by 0.5 percent.

The material has been provided by InstaForex Company – www.instaforex.com

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