DXY: The dollar rises as banking worries subside

The dollar advanced during Wednesday's session and remained elevated on Thursday.

The US dollar is trading higher against its major counterparts on Thursday, as currency speculators bet on it in response to diminishing banking concerns. The broad-based uptrend strengthened the dollar against the euro and the pound, but most notably against the Japanese yen.

The USD/JPY appreciated 1.6%, or more than 200 pips, on Wednesday due to volatility surrounding the end of the Japanese fiscal year this week. Beginning on April 1, 2023, Japan will have a record budget of 114tn, or just under $870bn.

As traders digest the US GDP report for the fourth quarter, the dollar could experience increased momentum on either side of the market today. Consistent with the expansion rate of the previous quarter, analysts anticipate a growth rate of 2.7% for the upcoming quarter.