Dollar drops today below one-year high as crunch time looms

Dollar drops today below one-year high as crunch time looms

The U.S. dollar drops today below a one-year high versus major peers on Tuesday as traders waited on key U.S. payrolls data at the end of the week for clues on the timing of a tapering of Federal Reserve stimulus and the start of interest rate hikes.

Dollar drops today & the US Dollar index

The U.S. dollar index, which measures the currency against six rivals, was about flat at 93.845, easing back slightly since peaking Thursday at 94.504, its highest since late September 2020.

That followed a rally of as much as 2.8% since Sept. 3 as traders rushed to price in tapering as soon as next month and possible rate rises next year, while the currency also benefited from safe-haven demand amid worries spanning the risk of global stagflation to the U.S. debt ceiling standoff.

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