Doha: The dollar extended its gains on Wednesday, reaching its highest level in 13 months against a basket of major currencies, as investors sought safe-haven assets amid a sell-off in technology stocks and anticipation of an interest rate hike by the Federal Reserve.
According to Qatar News Agency, the dollar index, which measures the greenback against a basket of currencies including the yen and the euro, climbed to 101.44, marking its strongest level since May 13, 2025. The surge in the dollar reflects growing investor sentiment that the Federal Reserve may soon announce an increase in interest rates, prompting a shift towards the stability of the dollar.
The euro traded at $1.1375, nearing its lowest level in a year. Similarly, the British pound edged down slightly to $1.3199, reflecting a cautious market sentiment. Meanwhile, the risk-sensitive Australian dollar held steady at US$0.6918 as market participants awaited the latest consumer price index reading.
The New Zealand dollar slipped 0.05% to US$0.5665, hitting a new seven-month low, signaling the broader pressure on currencies amid the dollar's rise. Concurrently, the Japanese yen was last trading at 161.57 against the dollar after briefly falling to a two-year low of 161.93 late Monday. A break above 161.96 would place the yen at its weakest level since 1986, highlighting the ongoing strength of the dollar.