It took the dollar gauge four days of rejuvenation to reignite its upward trend, crossing into a one-month high right around the 104.00 mark.
The dollar index DXY rose 0.9% on Tuesday as it threatened to break out of its recent four-day consolidation. The fresh move up helped the dollar peak at a one-month high of 103.90, but momentum faded, and the gauge closed the day back into its range under 103.50.
In early deals on Wednesday, the dollar index was trading flat as FX traders anticipated the release of fresh news that would stir the market. In this light, the week is looking fairly quiet on economic reports with jobless claims slated for delivery on Thursday.
Broadly, the dollar has regained its dominance across the currency space. Over the past three weeks, it has added a mighty 3% to its valuation stacked against six rival currencies. In the past 19 trading sessions, the dollar index has closed in the red just five times, signaling strong demand by speculators amid an uncertain market outlook.