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The US Dollar Index (DXY) continued its climb on Friday morning, reaching its highest level in over a month.
The index, which tracks the value of the dollar against a basket of currencies, topped 104.44 early Friday — the highest recorded level since February 16. The DXY is up 1% since the close on Wednesday, when the last Federal Reserve rate decision was announced.
“The $DXY Dollar Index has posted its biggest rally in five weeks. Seems any belief that the #FOMC was dovish last week never congealed,” John Kicklighter of StoneX Group Inc stated.
Kicklighter added that the convergence and flatlining of the 20-, 50-, 100- and 200-day simple moving averages also suggest a bigger consolidation for the dollar index.
Meanwhile, Scotiabank indicated that the DXY looks like it might test the 105 level which would match the February high. Any move north of 105 and the DXY would be looking at a new 4-month high.
See the chart below highlighting the recent move up in the dollar.
Here is a list of other currency-related exchange traded funds that involve the U.S. Dollar that may be worth monitoring:
- Invesco DB USD Bullish ETF (NYSEARCA:UUP) +3.9% YTD.
- WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSEARCA:USDU) +3.8% YTD.
- Invesco DB US Dollar Index Bearish Fund (NYSEARCA:UDN) -2% YTD.
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