Dollar Clings to 20-Year High Ahead of April CPI

The US dollar traded just off of 20-year highs in Wednesday’s session as investors eye April’s CPI report which is expected to show that inflation has already reached its peak.

This year, unfavorable macroeconomic conditions have prompted investors to seek a safe haven in the greenback, resulting in an 8% gain for the American currency.

Later today, markets will be tuning in to the Federal Reserve’s statement, betting on another half-point hike. Further, the US central bank is under pressure to announce plans on how it will shrink its $9-trillion balance sheet. Runoff is likely to start as soon as June 1.

King dollar seems in no danger of losing its crown as it continues to dominate across the currency board. Earlier in today’s session, peer currencies the Aussie dollar and the New Zealand dollar remained near a two-year low against the stronger greenback.

Overseas, the euro has been floating mostly sideways since hitting a five-year low.

Elsewhere, Bitcoin clawed back some of its losses and is up 2% after slumping to the brink of $30,000, its lowest since July of last year.