Dollar extends rally to near yearly highs as risk aversion bites

The greenback's strength persists as investors flee riskier assets, with copper sliding and tech stocks under pressure. The Fed's July 29 decision looms as the next key catalyst.

By Handelsavisen Newsroom · Automated 2026-07-17 13:55 UTC · 1 min read

The US dollar surged to levels near its highest point of the year on Friday, driven by a broad wave of risk aversion across global markets.

The greenback's advance came as investors rotated out of cyclical assets, with copper prices falling more than 1% on the Comex despite holding above the $6 per pound threshold.

The Nasdaq Composite also faced selling pressure, reflecting the broader retreat from growth-oriented equities.

This latest move extends a powerful rally for the dollar, which is on track for its largest monthly gain in nearly a year.

The currency's strength is underpinned by shifting expectations regarding Federal Reserve policy, with markets increasingly pricing in the possibility of rate hikes rather than cuts.

The dollar recently touched a 13-month high against a basket of major currencies, signaling a significant repricing of the US monetary outlook.