The dollar was rising as general risk aversion drives investors toward safe-haven assets, Pepperstone strategist Michael Brown said in a note.
Uncertainty over the global economic outlook and the threat of unsettling announcements from President Trump means investors remain in no mood to hold exposures to risky assets, he said.
This recent bout of dollar strength probably won’t last, particularly with the idea of U.S. exceptionalism now over and the dollar being the “most exposed of all to the to-and-fro over tariffs.”