Dollar rebounds after US reiterates strong-dollar policy

New York: The US dollar has risen against a basket of major currencies, recovering from a four year low reached in the previous session, after the US...

New York: The US dollar has risen against a basket of major currencies, recovering from a four-year low reached in the previous session, after the US Treasury reaffirmed Washington's commitment to a strong-dollar policy.

US Treasury Secretary Scott Bessent said on Wednesday that the United States continues to support a strong dollar, stressing that economic fundamentals remain sound. He also denied any US intervention in currency markets to support the Japanese yen.

The dollar index, which measures the US currency against six major peers, rose by 0.5% to 96.391. The index had fallen to 95.86 on Tuesday, its lowest level since February 2022, after President Donald Trump downplayed the dollar's recent decline.

Despite the rebound, the dollar index is down nearly 2% so far this year, following a 9.4% fall in 2025.

Elsewhere, the euro climbed above $1.20 on Tuesday for the first time since 2021, while sterling reached its highest level in four and a half years.