World Currencies Remain under Pressure of Strengthening USD

Not only Russian ruble and Argentine’s peso showed multiyear lows this months, but a plethora of other world currencies – and, now, even Bitcoin (BTCUSD) – found themselves under unabated pressure of the strengthening greenback.

The U.S. dollar index (DXY00) rose 0.07% on Thursday, hitting a 2-month high and further advanced by 0.08% today, on August 18, to reach 103.5085. The dollar rebounded from early losses on Thursday and rose after the 10-year Treasury yield rose to a 9-¾-month high, widening dollar spreads and weighing on the euro. Better-than-expected U.S. economic releases on weekly jobless claims and August's Philadelphia Fed business outlook survey also boosted USD’s outlook. Also, weakness in equities on Thursday stoked liquidity demand for the dollar after the S&P 500 fell to a 7-week low.

U.S. economic news on Thursday was positive for the dollar. Weekly initial jobless claims fell -9,000 to 239,000, pointing to a slightly stronger job market than expected at 240,000. The Philadelphia Fed's August business outlook survey also rose +25.5 to a 16-month high of 12.0, beating expectations of -10.4.

EUR/USD fell -0.12% on Thursday, hitting a 6-week low, and today, on August 18, it’s further easing by 0.09% to 1.08626. EURUSD was also pressured by dovish comments from ECB Governing Council member Kazaks who was quoted as saying the Board has not yet decided on an ECB rate hike in September.