The dollar index hits its highest value in four weeks. The euro continues to be hit by the turbulence in France.
He global dollar rose this Tuesday to its best level in four weeks while the euro was trading at one-month lows weighed down by political concerns in Francewhile investors focused on the data from inflation from the United States and in the interest rate forecasts of the Federal Reserve (Fed).
He dollar indexwhich compares the greenback with a basket of six major currencies, rose 0.2% to 105.39 units, its highest level since May 14.
The euro fell 0.3% and was trading at a one-month low of $1.0725. The single currency lost ground on Monday, pressured by investors’ fears that the advance of Eurosceptics in the European elections and the calling of early elections in France could complicate the attempts of the European Union to deepen integration.
He dollarfor its part, was supported by the rise in Treasury bond yieldfollowing last Friday’s solid US employment data.
The monetary policy meeting of the Bank of Japan, which will conclude on Friday. Although investors expect a reduction in the entity’s monthly purchases of public debt, the large yield differentials with the United States have kept the and in On the defensive.
“This week, the US inflation data and the dot plot of the Fed (rate projections) will be the protagonists of the currency market,” said Athanasios Vamvakidis, of BofA. “The French elections are extremely important, but we have to see how they develop and, regardless of what the polls say, we will have to wait for the second round.”
For its part, the pound sterling reached 22-month highs against the euro and barely changed against the dollar, which for its part advanced 0.05% against its Japanese pair, to 157.12 yen, after touching its highest level since June 3 (157 ,43).
Source: Ambito
