A sudden return of market scrutiny on US regional banks is adding a rather unexpected negative factor to the dollar. US equities took a hit yesterday, with the S&P500 regional banks sub-index plummeting 5% after two lenders reported problems with loans associated with fraud.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, is seen extending the overnight pullback from the vicinity of its highest level since early August, touched last week, and drifts lower for the second straight day.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a stronger note near 98.85 during the Asian trading hours on Monday.