This was the clearest indication yet that Russia is serious about its plan to shift away from using the US dollar. Western sanctions against Russia have accelerated this process and encouraged Russia's close economic alliance with China.
NEW YORK (Reuters) - The U.S. dollar extended broad-based gains on Wednesday after marginally higher-than-expected U.S. inflation data coupled with earlier concerns over European banks sent the greenback to one-week highs against the euro.
The US dollar continued its rally on Wednesday, hovering near a four-year high against major currencies. In early trading, it rose over 110 yen for the first time in six years and was close to a two-year high against the euro at $1.25.
Traders have sold the US dollar against the British pound, euro and a host of other currencies in recent sessions as they come to the realisation that they have have been overly generous in their pricing to the first US interest rate rise.