USD Retreats

The US Dollar continued on a rampage, hammering down Asian currencies. The bullish US dollar sentiment does not seem to change in the near term after the US dollar index hit a six month high as fund managers and investors trimmed down positions of commodities and high yielding currencies.

However, the US dollar slipped a little when London trading started as traders took profit on the sharp rally in the previous sessions thus capping the US dollar upside. This allowed the Asian currencies some room to breathe as traders begin to take some profit as the US Dollar is seen to be overbought.