In the course of Wednesday, the American currency has resumed rising against the majors offsetting the previous weakening, but the size of the upturn is limited on persisting fears of investors caused by the recent stock market disruption.
The market was filled with by the pessimism on the Friday stock market meltdown after the optimistic US labor report that fueled fears about higher inflation leading to increasing yields of state bonds.
Dow Jones Industrials posted an all-time daily decline on Monday. However, the US stock exchanges improved the next day driving the US dollar down.
The US Dollar index reached 89.74. The euro and sterling decreased vs the US dollar to $1.2351 and 1.3910 respectively.
At the same time, the Japanese yen increased – USD-JPY dropped to 109.09. The US dollar to the franc went up to 0.9385.
The USD to CAD climbed up to 1.2515.
AUD and NZD to USD pairs also trimmed gains reaching 0.7869 and 0.7314 respectively.
Notably, the market awaits the monetary decision of New Zealand's Reserve Bank to be announced tomorrow. According to the reports, it is expected that the Bank will leave interest rate at 1.75%.