On Thursday, the US Dollar Index (DXY) measured against a basket of six major currencies on an average edged higher as latest Government data underscored US services sectors activity might not have reached a recession yet, while euro holds closer to a 20-year-low bottomed yesterday as Gazprom gas halt sent shockwaves across major EU economies.
Nevertheless, in the day’s sharp retreat in the Eurozone’s single currency was almost entirely galvanized by a statement from Gazprom released over the weekend that the Russian-stated backed energy mogul had been unable to resume gas pipeline Nord Stream I due to a technical glitch.
Adding further strains, Kremlin was quoted saying in a press agency report that it would not allow a resumption Nord Stream I until sanctions are lifted, stepping up an act of retaliation which has been widely viewed as a tug of war between Kremline and the Biden Administration, as the incumbent Biden administration's persistent lobbying effort on EU eventually persuaded the bloc's far-right Governments to freeze Russian bond holdings in euro alongside other assets.
In tandem, ISM (Institute of Supply Chain Management) data had unveiled that its index for US services sector activities was inched higher to 56.9 compared to a reading of 56.7 in July.
Dollar gains as euro falterers further
As of Thursday's US morning trading hours, the US Dollar Index (DXY) measured against a basket of six major currencies on an average rose by 0.17 per cent to 109.60..
Aside from that, euro faltered 0.45 per cent to $0.9960 against its American counterpart. Japanese Yen dipped 0.12 per cent to 143.90 against its American counterpart amid growing political turbulence. British Pound fell 0.27 per cent $1.1501 against the greenback as Tory’s Liz Truss has been elected as the new PM of UK, while risk-sensitive loonies like of Australian Dollar drowned nearly 0.26 per cent to $0.6750, while commodity-linked Canadian Dollar edged 0.09 per cent higher to $1.3111.