The US dollar strengthened to a three-month high on Wednesday, while the euro slipped to $1.1581, extending losses for a third day and hitting its weakest level since late November. The British pound also fell 0.3% to $1.3315, and the Australian and New Zealand dollars weakened amid mixed economic signals.
Rising energy prices have added pressure to global markets, driving inflation concerns and affecting stocks and bonds. Benchmark Brent crude oil rose 1.2% to $82.45 per barrel, its highest since July 2024, marking a 14% gain since last Friday. European gas prices also surged, climbing 70% over the past week.
Against other major currencies, the dollar was flat at 157.68 yen and 6.9225 Chinese yuan in offshore trade. Economic data presented a mixed picture, with official PMI gauges in China pointing to a slowdown, while private-sector activity surpassed expectations. In Australia, GDP growth picked up speed in the fourth quarter, yet analysts noted that growth may still be running above potential.
In the digital asset market, Bitcoin rose 0.8% to $68,585.42, while ether increased 0.8% to $1,985.40, reflecting continued investor interest amid currency volatility.
