Bennie Kincaid 
As the European market opened for trade the U.S. dollar has retained its demand as compared to other currencies.
As inflation reports are circulating through the entire market, Feds are very clear that a high-interest rate hike is needed.
The upcoming increase in the interest rate has given the momentum to U.S. dollar. On the other hand, the Dollar index was once higher.
The U.S Dollar index that shows the price of the greenback against the pact of six top currencies showed that the dollar index was higher by 0.1% against the other currencies.
As of this writing, USD is being traded at $104.78. Experts are certain that USD is on its way to going up by the straight fourth week.
As long as Feds will continue to increase the interest rates the price of USD will remain high.
As the things stand all other currencies are feeling the pressure against the U.S. dollar.
Moreover, gold is also feeling pressure due to high strong U.S. dollar. So far this week USD has seen an increase in its price by 0.8%.
U.S. Dollar is Likely to Go Up
The current economic data shows slow U.S.GDP growth. Moreover, high inflation and recession talks are also reshaping the market dynamics.
Amid all this news, the Feds have no other option, but to spike up the interest rate in order to keep U.S.D stable.
Hence, the price of U.S.D is only getting more and more stable while the overall economy has become sluggish.
However, for the second half of this season, the Feds will normalize the policy rate. But for the second part of 2023, the U.S. economic output is positive.
If the economy grew at a high pace this would also give much-needed support to the dollar. As the things stand it wins a win situation for dollars.
But one big change has occurred regarding the U.S. employment situation. Recently claims have been made that the job ratio has dropped.
As employment remains the hot topic, the indicators are not positive as compared to the start of this month.
Earlier this month the U.S Labor Department of Labor shared the figure for massive job creation in the current.
But as we are entering the last week of Feb, the job crisis is looming once more.
Other Currencies’ Performance In Comparison to USD
USD/JPY
The pair saw a gain of 0.1 in its price. As of now, the pair is trading above 134.79.
The new governor of the Bank of Japan told the country’s parliament to carry on accommodating policy in near future.
Japan still has a weak economic outlook as the result Japanese yen still remains vulnerable to the U.S. dollar.
EUR/USD
The pair saw a decline in price by 0.1% and currently exchanging hands at around 1.05. This shows that Euro is weak as compared to the dollar.
Currently, Euro is at its 6-week lowest price as long as Russia and Ukraine’s dispute will not settle Europe will remain fragile.
The reason is simple, the entire of Europe depends on Russian gas for its industrial production. As the things stand Europe’s production is severely damaged due to the boycott of Russian gas.
In addition to that, GBP/USD has seen an increase of 0.1% against the dollar. Moreover, NZD/USD and AUD/USD both fell against USD by 0.1% and 0.2%, respectively.
The economic indicators of U.K show that consumer has finally put their interest in the market. Recently, the market has seen a high influx of investment.
This is the first time in two years that investors have become active in the market.
But it is obvious that as long as the interest rate will keep mounting US will keep building on its gain.
A strong dollar means the commodities market can also see significant fluctuations in terms of prices.
As the things stand, investment in the U.S. dollar is the safest option to score lucrative gains. U.S. Dollar is likely to stay strong for the coming month as well.
