The US dollar held near a two-week peak on Wednesday, with the dollar index up 0.12% at 102.18, building on a 0.86% surge Tuesday.
The extended rally comes as elevated Treasury yields and sliding equity markets reflect cooling risk appetite. The euro slipped to $1.0954, down 0.95% in its sharpest daily drop since July.
Sterling also remains under pressure, falling 0.21% to $1.2646 after a 0.87% plunge Tuesday, its largest single-day loss in three months. The Japanese yen extended its slide against the greenback, which was last up 0.43% at 142.57 yen per dollar. The New Zealand dollar, a preferred risk proxy, traded 0.11% higher at $0.6259 but hit two-week lows earlier amid broader growth concerns.
While December’s exuberance over falling inflation and dovish Fed tilt sparked bets on 2024 rate cuts, wavering risk sentiment in early 2024 has supported the dollar’s value. Key economic data due Wednesday, including Fed minutes, job numbers and manufacturing metrics, could drive further dollar and risk asset direction.
