It was an action-packed week on the global currency market. The US dollar index surged to another 20-year high of 114.78, the British Pound and the Indian Rupee tumbled to a new low against the greenback and the Chinese Yuan fell to a 14-year low versus the US dollar. The hawkish stance of the US Federal Reserve is continuing to weigh on the market. The US Treasury yields continue to surge on the back of this and in turn the dollar is retaining its strength.
However, the dollar index has come-off sharply in the second half of the week giving back all the gains. It has closed the week at 112.12, down 0.95 per cent.
Watch the support
The resistance at 114 on the US dollar index (112.12) mentioned last week is holding well. The index has failed to get a strong follow-through rise above that and has come-off from the high of 114.78.
An important support is at 111.50. If the dollar index manages to sustain above this support and bounces…
