The United States of America dollar index , which measures the greenback against a basket of six major currencies, on Wednesday, May 30, slumped from near its 6-1/2 month peak touched in the previous session.
The greenback dipped as the euro recovered from 10-month lows after reports that Italy’s biggest party would make a renewed attempt to form a coalition government and end months of political turmoil.
The dollar index .DXY, which tracks the greenback against a basket of six currencies, was down nearly half a percent on Wednesday to a session low of 94.236, below Tuesday’s 6-1/2-month high. The dollar remained steady against the yen JPY=.
Meanwhile, the euro EUR= rallied and Italian government bond yields IT10YT=RR IT2YT=TWEB settled below multi-year highs after Tuesday’s market slide.
The single currency, which plunged to a 10-month low of $1.1510 on Tuesday, rose as much as 0.9 percent to a session high of $1.1647 EUR= on Wednesday. It remains down 4 percent this month against the dollar.
The Canadian dollar CAD= rose as much as 1.2 percent on Wednesday after the country’s central bank held interest rates steady but suggested that it could raise rates soon, possibly as early as July.
