3 minutes - Source: CNBC
The dollar index, which measures the greenback against a basket of other currencies, rose to 99.11, its highest level of 2019 and in two years.
On Wednesday the index jumped 0.7%, its largest one-day rise in about three months.
“While there’s no single reason to explain the dollar’s strength, multiple factors are in play,” said Hussein Sayed, analyst at broker FXTM.
“The UK is facing a political crisis with Brexit, the euro zone is near a recession, bond yields across the developed economies remain very depressed, and investors want a safe place to park their money,” he said.
“Despite the impeachment drama, the U.S.
Increased political tensions on both sides of the Atlantic - an unfolding effort by U.S.
The euro was 0.16% higher against the dollar at $1.0959, after falling as low as $1.0923, its weakest since May 2017.
Despite the opening of an impeachment inquiry into U.S. President Donald Trump this week and mixed signals on a trade deal, the dollar has remained resilient. It has been in demand both as a safe-haven when investors become nervous, and also when a deal with China - and a boost to the global economy - seems within reach.
Against the Japanese yen, which attracts investors in times of uncertainty, the greenback fell 0.25% after the U.S.
Meanwhile, the New Zealand dollar gained 0.73% after the country’s central bank governor said it was unlikely he would need to use unconventional monetary policy.
Sterling recovered from a sharp dive on Wednesday to trade unchanged on the day, even as investors waited for