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 worldwide economic outlook and the specter of unsettling announcements from President Trump means investors remain in no mood to carry exposures to dangerous assets, he said.
This recent bout of dollar strength probably won’t last, particularly with the thought of U.S. exceptionalism now over and the dollar being the “most exposed of all to the to-and-fro over tariffs.”