The dollar jumped against the euro and yen Wednesday after minutes from the most recent meeting of the Federal Open Market Committee showed the central bank was gradually shifting its stance in a more hawkish direction.
NEW YORK (MarketWatch) - A widely watched U.S. dollar index hit its highest level in nearly a year on Tuesday as the greenback mounted a tepid climb against its rivals and the euro continued to weaken.
A reserve currency is held by a world central bank, which acquires U.S. bonds, facilitating their liquidity to help global businesses to activate international transactions by eliminating the intricacies and costs of exchange rates.
Data showing U.S. home builder sentiment rose in August to its highest since January supported the dollar. The NAHB/Wells Fargo Housing Market index rose to 55 in August from 53 in July, the group said.
Oil is pumped into an oil tanker at the Ust-Luga oil products terminal in Russia. State-owned energy giants are now accepting payments in Russian rubles and Chinese yuan -- as opposed to U.S. dollars -- amid Western sanctions against Moscow.