A rebound in the Dollar Index pushes the euro lower, while USDJPY eyes a test of 160-161 levels amid bullish sentiment.
The Dollar Index climbed above 99.00, extending its rebound and weighing on the euro, which dropped below 1.16. The move reflects renewed strength in the greenback amid shifting market sentiment.
Earlier, the euro had briefly recovered before reversing course. The Dollar Index’s rise follows a broader trend, with USDJPY poised to test 158-161 levels before a potential pullback. Analysts maintain a bullish outlook above 158.
The Australian dollar and British pound also retreated after a short-lived bounce, underscoring the dollar’s dominance in currency markets.