Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTRich AsplundWed, June 24, 2026 at 9:34 PM GMT+2 5 min readPile of money by Atlantagreg via iStockThe dollar index (DXY00) on Wednesday rose by +0.20%. The dollar added to its week-long surge on Wednesday and posted a new 13-month high. The dollar continues to benefit from carryover support from last Wednesday, when the FOMC's hawkish stance suggested higher interest rates later this year. The dollar fell back from its best level after May's new home sales unexpectedly fell to a 4-month low.The US Q1 current account balance was -$225.8 billion, a larger deficit than the -$208.9 billion expected.More News from BarchartDollar Rallies and Gold Sinks on the Prospect of Tighter Fed PolicyDollar Moves Higher as Weak Stocks Boost Liquidity DemandDollar Climbs as Stocks SlumpStop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!US May new home sales unexpectedly fell -7.3% m/m to a 4-month low of 580,000, weaker than expectations of an increase to 640,000.The swaps markets are discounting the odds at 34% for a +25 bp rate cut hike at the next FOMC meeting on July 28-29.EUR/USD (^EURUSD) fell by -0.25% on Wednesday and posted a fresh 1-year low. The dollar's strength on Wednesday weighed on the euro. Also, the euro is falling amid negative carryover from Monday, after ECB President Lagarde's dovish comments reduced the chances of additional ECB rate hikes, when she said she sees no need for a more forceful ECB response to the US-Iran war. However, the euro recovered from its worst level on Wednesday on hawkish comments from ECB Executive Board member Isabel Schnabel, who said, "From today's perspective, we will need to continue raising interest rates in order to bring inflation back to our target of 2% in the medium term." Also, Wednesday's Eurozone economic news was supportive of the euro, as the German IFO business confidence index rose more than expected. The German Jun IFO business confidence index rose +0.6 to 85.6, stronger than expectations of 85.5.The markets are discounting a +9% chance for a +25 bp rate hike by the ECB at its next policy meeting on July 23.USD/JPY (^USDJPY) on Wednesday rose by +0.16%. The yen moved lower on Wednesday but remained above Monday's 23-month low against the dollar. The yen remains under pressure amid concerns that the BOJ is falling behind the curve in normalizing monetary policy. Last week, BOJ Deputy Governor Uchida said that the BOJ will assess the impact of rate hikes on the economy, signaling it will move at a glacial pace on policy tightening. Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info