The dollar rose on Asian session recovering from its lowest level in four and a half months, drawing strength from better-than-expected economic data, which supports speculation of a further rise in benchmark interest rates.
At 03:48 GMT, the USDIX is hovering around the opening price of 99.56, compared to the week's low at 98.66 lowest since November.
The March Consumer Confidence Index rose to 125.6 the highest since 2000 compared to February's reading of 114.8 - the highest since 2001 - which revised up to 116.1, the reading exceeded the expectations of 113.9.
The index is a leading indicator of consumer spending, which represents the majority of US economic activity, reflecting the likelihood of accelerated economic growth in the country.
The US dollar showed remarkable resilience after yesterday's rally, indicating that optimism and hope among market participants still exists, that some positive things will happen under Trump's management.
US President Donald Trump's failure to legislate a health care program has raised doubts about his ability to implement fiscal stimulus policies such as tax cuts and infrastructure reform, but at the same time bolstered expectations that Republicans would agree on one of the fiscal stimulus policies, As the second Term in November incentive them to take a single fiscal stimulus, giving the US dollar the strength to recover.
The US dollar drew strength to recover from Federal Reserve Vice Chairman Stanley Fischer, who said in a television interview on Tuesday that two more increases to U.S. overnight interest rates this year seemed "about right."
The Federal Reserve raised interest rates in March and the Fed's monetary policymakers expect at least two rises in interest rate this year.
Federal Reserve Governor Jerome Powell said on Tuesday that the collapse of health care reform efforts makes the Fed's task more difficult as it tries to anticipate which set of policies would pass.
Dollar and US Equities recovery gave The US dollar against the Japanese Yen pair the strength to the rebounded, easing investors' appetite to buy low-yielding currencies as a safe haven, as risk appetite improves in the markets,
The US Dollar rose 0.09% to levels around 111.20 against the Japanese Yen, recovering from the low of the week at 110.10.
Pound falls on Brexit anxiety
The pound has fallen since yesterday's trading as investors prepared for British Prime Minister Theresa May's decision later on Wednesday to formally file papers to leave the European Union.
The pound was affected by the Scottish Parliament's approval of the independence referendum but the British government would not ente independence negotiations.
Sponsored by: CloudsIndex.com