The price of the US dollar rose to a four-month high on Tuesday to approach the height of 2019.
According to Reuters, the decline in price fluctuations encouraged hedge funds to form positions in the relatively high-yielding US currency.
Price volatility has declined sharply in recent months, prompting investors to borrow in low-yielding currencies such as the euro and the franc and invest in the dollar or other high-yielding currencies.
Against a basket of currencies, the dollar index rose 0.01 percent to 98.91, the highest level since early October, and is less than 1 percent from the 2019 peak of 99.67. The US currency increased 1.6 percent last week.
The risk appetite has stabilized thanks to a slowdown in the rate of coronavirus infection, despite the high number of deaths. The Australian dollar rose 0.3 percent to 0.6709 dollars.
The Chinese yuan rose to 6.9785 against the dollar and the People's Bank of China kept the average guiding price of the currency relatively stable despite the sharp appreciation of the dollar over Monday night.
