U.S. dollar maintains keeps stable in face of stabilizing global markets

The U.S. dollar was able to preserve its stability on early Tuesday due to signs that markets were recovering from their recent downfall. Investors’ appetite to bet against the greenback rose due to future rate hike expectations. The dollar index remained steady at 90.1392 after dropping as low as 0.26 percent yesterday. It is currently not too far from an almost two-week high of 90.569 touched last Thursday.

Despite signs of reviving global equities, some investors are still not convinced the worst is over. This is after U.S. bond yields stayed at elevated. Consumer price data scheduled to be released this Wednesday can rekindle inflation concerns.

As to other currencies, the euro rebounded from its declines last week as it was traded at $1.2290. The common currency is still two cents lower than a three-year high of $1.2538 touched last January 25. One of the factors that influenced the euro’s performances is indications that the European Central Bank (ECB) will reduce its massive bond portfolio sooner than expected in the course of the year.

Gold prices solid due to dollar’s recent weakness

The price of gold was unmoved on Tuesday while investors await U.S. inflation data. U.S. gold futures edged lower by 0.1 percent to finish at $1,324.6 an ounce and spot gold was stable at $1,322.82 an ounce after jumping more than 0.5 percent on its last settlement.