“It seems like yet another piece of data that shows what the Federal Reserve has been preaching: the economy is resilient enough to take more hikes,” he said. John Perez, of Monex USA in Washington.
Euro zone data released on Tuesday had boosted the common currency during the opening of the day and reinforced the view that the economy is reasonably surviving a winter of intense price pressures, analysts said.
However, the dollar extended its gains against the euro, although it remained close to the nine-month lows hit the day before. The euro yields 0.17%, to 1.0852 dollarsjust below its maximum since April, of $1.0927.
US business activity data helped push the dollar to its highest in nearly a week against the yen. The The US currency was last up 0.03% at 130.7 yen.
Last week, the dollar fell to 127,215 yen, its lowest level since May, ahead of the Bank of Japan’s monetary policy review, in which investors were betting that the central bank might end its stimulus program. However, the entity did not modify its monetary policy, which gave the greenback a breather.
Sterling was one of the worst performing currencies against its US counterpart, plunging 0.71% to $1.2288 after a survey showed British private sector economic activity fell to its lowest in January. fastest pace in two years.
“The United States is no longer the cleanest shirt in the global economic laundry,” said Ray Attrill of National Australia Bank, who expects the dollar index to fall to 100 by the end of March and the euro to rise to $1.10. “That’s part of our bearish view of the dollar, that the United States is not going to be the leader in global growth.”
The euro has advanced almost 0.8% in the past week, buoyed by a flurry of European Central Bank officials who have indicated that more interest rate hikes than currently anticipated by investors will be necessary to tackle inflation. markets.
Source: Ambito
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