The dollar has strengthened sharply amid demand for defensive assets

On Tuesday afternoon, the US dollar accelerated its growth in pairs with the euro, pound and yen amid increased demand for defensive assets and sales in global equity and bond markets.

The ICE dollar index (DXY), which tracks the dynamics of the US currency against a basket of six currencies, rose by 0.57%, the highest in the last month.

Investors are hedging risks due to concerns about the deteriorating budget situation in the UK, where the authorities may cut spending or raise taxes. An additional factor of uncertainty remains the upcoming report on the US labor market for August, which will be released on Friday and may influence the Fed's decision on the rate. Analysts expect an increase in unemployment to 4.3% and an increase in employment outside agriculture by 75,000 jobs.

Experts also note that the dollar may maintain support even with weak labor market data due to a slowdown in the strengthening of the yuan, possible duties against the BRICS countries and seasonal factors.

The euro fell to $1.1646 against $1.1712 a day earlier (-0.6%). The pound fell 1.2% to $1.3382. The dollar rose 1% against the yen to 148.7 yen.