A rush of dollar buying has pushed the greenback up to some notable highs against other major currencies, driving the dollar index up to a four-month high.
The euro has dropped 0.4 per cent against the dollar today, touching a two-week low of $1.1022, while the pound has skidded 0.9 per cent against the greenback to $1.3134, writes Joel Lewin.
And the buck has just been given another boost by some strong US housing starts data. Housing starts rose 4.8 per cent month on month in June, well above the 0.2 per cent rise predicted by economists.
The dollar index is climbing for the fifth consecutive week, its longest winning streak since the back end of 2014.
The index is up 0.4 per cent today, and 4.1 per cent since the Brexit vote, touching a four-month high of 96.944.
Over the last week the buck has made some serious headway against the yen.
The Japanese currency soared in the wake of the Brexit vote as investors piled into the perceived haven, and it rocketed more than 6 per cent against the greenback, breaking past ¥100 per dollar for the first time since 2013.
But as risk appetite has recovered during the last week, driving US stocks up to record highs, the dollar has rebounded 6.3 per cent against the yen. With the help of the strong housing starts data, the greenback has gained another 0.2 per cent against the Japanese currency today, touching a four-week high of ¥106.42.
