The dollar is falling as investors focus on increased risk appetite

 The dollar declined as risk appetite increased and investors focused on the rise in commodity prices and on the date of central banks raising interest rates to face the high inflation rates.

The dollar hit its highest level in a year against a basket of currencies last week after investors increased bets that the Federal Reserve (the US central bank) would raise interest rates sooner than expected to stem inflationary pressures.

But those bets were off as investors prepared for a larger-than-expected rise in interest rates in their home countries and as commodity-linked currencies such as the Canadian and Australian dollars rose.

The dollar index fell slightly at its latest price 0.09 percent to 93.71.

The Australian dollar rose 0.27 percent on the day to trade at $0.7496, after hitting its highest level since July in the evening.

The New Zealand dollar also rose 0.4 percent to $ 0.7154, after recording its highest level since June in the evening, and its rise by 1.4 percent since the beginning of the week.

The decline in demand for assets that are considered safe havens led to the dollar's rise to its highest level in four years against the Japanese yen at 114.67 yen to the dollar before falling to 114.26 yen.

The Canadian dollar rose after the country's inflation rate accelerated to an 18-year high in September, putting focus on the Bank of Canada ahead of a rate decision next week. The dollar fell 0.07 percent against the Canadian dollar, to record 1.2352 Canadian dollars.

The British pound fell 0.05 percent to $1.3781 after data showed that inflation slowed unexpectedly in Britain last month.

For cryptocurrencies, the price of Bitcoin soared to a record high of $66,074 after the day the first cryptocurrency futures trading fund was launched on Tuesday.