The dollar tried to extend a rally on Wednesday as chatter about the possibility of higher U.S. interest rates and a sell-off in tech stocks soured risk sentiment to the benefit of the safe-haven currency.
The S&P 500 fell Tuesday, as investors reined in their bullish bets on tech stocks after Treasury Secretary Janet Yellen talked up the prospect of rate hikes to prevent the economy from overheating.
Asian shares risked falling for a fourth straight session on Wednesday as sentiment took a knock from a selloff in large cap Wall Street tech darlings, combined with talk of rising U.S. interest rates.
Gold was down on Tuesday morning in Asia, after hitting an over two-month high during the previous session, as the dollar strengthened and investors digested U.S. Federal Reserve Chairman Jerome Powell’s optimistic comments on the economy.
Oil held gains near $65 a barrel on optimism that the steady resumption of economic activity in the U.S. and Europe will underpin demand.
The dollar nursed losses on Tuesday after an unexpected slowdown in U.S. manufacturing growth prompted investors to trim bets that a booming U.S. economy could boost the greenback.