NEW YORK: The dollar rose on Tuesday as market sentiment turned risk-averse amid worries about earnings and the outlook for the global economy, which knocked the euro off a nearly 10-month high.
The US dollar index climbed 0.6% to 101.81, having dropped over 3.3% since the beginning of March.
A weak consumer confidence report and a decline in Federal Reserve manufacturing data further added to the dollar’s safe-haven appeal.
Data showed US consumer confidence fell to a nine-month low in April, a survey showed on Tuesday. The Conference Board said its consumer confidence index fell to 101.3 - the lowest since July 2022 - from a revised 104.0 in March.
The US Richmond Fed manufacturing index slid as well, down at -10 in April, the fourth straight month of contraction.
The yen rose 0.3% to 133.855 per dollar and was up 0.9% at 146.95 per euro, having earlier touched an eight-year low of 148.635.
The euro was down around 0.6% against the dollar at $1.0979, having risen 1.7% so far in April and over 4% since the beginning of March.
ECB board member Isabel Schnabel told Politico that a 50 basis point (bp) rate hike was not off the table and would depend on data - notably inflation figures due two days before May’s meeting.
Elsewhere, sterling was down 0.6% at $1.24, but was close to a 10-month high of $1.2545 reached earlier this month.
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