Dollar stays near 3-week low
The US dollar remained near its lowest level in three weeks during Wednesday's trading, as demand for the currency as a safe haven increased due to tensions in the Middle East, amid fears of rising inflation resulting from higher oil prices. Meanwhile, the Australian dollar hit its highest level in three weeks against the US dollar after the Deputy Governor of the Reserve Bank of Australia indicated that inflation expectations have worsened significantly, raising by 0.2% to $0.70155 USD. The dollar index also steadied at 101.79 points after declining to its lowest since October 1st, amid escalating geopolitical tensions and falling US Treasury yields, coupled with decreased demand for safe assets. Geopolitical concerns, along with oil prices approaching their highest levels in five months, caused fluctuations in investor demand for the dollar, despite expectations that the resolution of tensions would lead to decreased demand for the US currency. At the same time, economic pressures in France have eased due to protests, as markets await decisions from the Federal Reserve, the European Central Bank, and the Bank of Japan regarding interest rates in the coming days, with expectations of no significant changes.
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