By Jiaxing Li and Harry Robertson HONG KONG/LONDON, June 24 The U.S. dollar extended gains to reach a 13-month high against a basket of major currencies on Wednesday, as investors prepared for rate hikes from the Federal Reserve and sought shelter from a tech stock selloff.
Expectations of a U.S. rate hike continued to build, with Fed officials sounding increasingly hawkish as the economy remains strong
Investors were also nervy about stock market volatility after a broad selloff of technology and semiconductor sectors, which sparked safe-haven demand for the dollar and bonds. Adding to the search for safe havens, the U.S. and Iran appeared to be at odds on some major aspects of their framework agreement. The dollar index, which measures the U.S. currency against a basket of major peers, climbed to a high of 101.71, the strongest level since May 2025.
It was last up 0.3% on the day. U.S. DOLLAR IS THE ‘PREFERRED SAFE HAVEN’ “The U.S. dollar is still the preferred safe haven,” said Ray Attrill, head of FX strategy at National Australia Bank. “Obviously the momentum is on its side at the moment, but I think there is a lot priced in,” he said.