The dollar index held around 97.4 on Wednesday after a recent climb from below 97, closing in on its strongest level since July 2020 as investors rushed for safety on fears that the conflict between Russia and Ukraine could quickly escalate further.
Investors also worried that inflationary risks and supply disruptions resulting from the conflict could dampen global growth, presenting a challenge for policymakers ahead of the Federal Reserve policy meeting later this month. Markets look ahead to employment data from ADP due out Wednesday, as well as to Fed chair Powell’s appearance in Congress to give his semiannual monetary policy update.