While the dollar is recovering from its lowest level, the yen and the Swiss franc recovered yesterday following the decline of the stock markets playing their status as a safe haven currency.

The dollar posted modest gains driven by the fall in U.S. stock indexes. On Tuesday, it recovered from its lowest level in a month and a half. EUR/USD initially hit a new one-and-a-half-month high on Tuesday following a rise in producer prices in Germany, but it retreated on the back of weakness in equities that boosted the dollar. USD/JPY fell to a new one-and-a-half-month low as weakness in equities sparked demand for a safe haven for the yen.

U.S. stock indexes fell on Tuesday and boosted demand for liquidity for the dollar. Since the beginning of the month, the Swiss franc has recorded a bearish wave that has seen it break a support at 0.9208. It is also trading below the downward moving averages at 13 and 34 periods that have crossed to the downside.