Investing.com - The dollar moved higher against a currency basket on Tuesday as U.S. stock markets rebounded after a sharply lower open and traditional safe haven currencies like the yen and the Swiss franc erased earlier gains.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.35% to 89.88 by 10:32 AM ET (15:35 GMT).
U.S. stock markets bounced higher after the three main indexes fell by as much as 2% at the open, following two days of heavy losses amid a broad based selloff in global equities.
The selloff in equities followed Friday’s stronger than expected U.S. jobs report which investors took as a sign that the Federal Reserve could raise interest rates this year at a faster pace than previously expected.
The dollar pushed higher against the yen but gains were muted, with USD/JPY rising 0.16% to 109.26 up from an overnight low of 108.46.
The dollar was also higher against the Swiss franc, with USD/CHF advancing 0.78% to 0.9388.
The yen and the Swiss franc tend to rise in times of market turbulence thanks to their safe haven status.
The euro was lower, with EUR/USD down 0.36% to 1.2323, off the daily high of 1.2434.
Sterling was also lower against the dollar, with GBP/USD falling 0.59% to 1.3873.
The dollar’s gains came in spite of data on Tuesday showing that the U.S. trade deficit grew in December to its widest in nine years due to a surge in imports.