WASHINGTON (dpa-AFX) - The U.S. dollar climbed higher amid expectations the Federal Reserve might start hiking interest rates from March 2022.
The dollar traded weak earlier in the day amid an improvement in risk sentiment as investors looked past the economic risks from the Omicron variant.
The governments in France and Britain resisted imposing lockdowns despite high infection rates.
U.K. Health Secretary Sajid Javid said that the government will not impose additional restrictions in England before the New year. sstrictions on large gatherings and ordered citizens to work from home for at least three days a week from January 3.
The dollar index, which dropped to 96.00 in the European session, climbed to 96.28 before retreating to 96.08. After a modest recovery from that level, the index is now up marginally at 96.15.
Against the Euro, the dollar is trading at $1.1309, gaining about 0.16%.
The dollar is up nearly 0.1% against Pound Sterling, at $1.3430, and is trading lower against the yen, fetching 114.81 yen a unit, compared to 114.89 Monday evening. Industrial output in Japan advanced a seasonally adjusted 7.2% on month in November, the Ministry of Economy, Trade and Industry said on Tuesday.
That beat expectations for an increase of 4.8% and was up from the 1.8% gain in October.
Against the Aussie, the dollar is at 0.7230, up from 0.7239.
The Swiss franc is little changed against the dollar at CHF 0.9174, while the Loonie is weaker by about 0.2% at C$1.2815 a dollar.
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