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Overheated super dollar: approaching 8-week highs due to US economic data

Overheated super dollar: approaching 8-week highs due to US economic data
Overheated super dollar: approaching 8-week highs due to US economic data

The dollar index, which measures the greenback’s strength against a basket of six other currencies, is at 105.56, falling from a nearly eight-week high of 105.91 reached last week.

Reuters

The dollar global experience a slight drop this Monday June 24although it remains close to a nearly eight-week high, while the Japanese yen registers a short rebound from its recent level of 160 units, which had previously prompted verbal warnings from Japanese authorities.

The yen had weakened to 159.94 per dollar in early trading, hitting its lowest level since April 29, when it hit a 34-year low of 160.245. This prompted Japanese authorities to intervene in the market, spending around 9.8 trillion yen to support the currency.

In that framework, the Japanese yen reached a maximum of 158.75 units per dollar. Analysts warned that the market is in a delicate situation due to current levels. In its last quote, the yen advanced slightly, standing at 159.54 units.

Dollar: what the market analyzes

Michael Brown, senior strategist at Pepperstone, commented: “It certainly didn’t feel like an intervention… however, this shows how nervous the market is about the possibility of one.” He added that the Finance Ministry is unlikely to intervene unless the yen’s weakness is especially rapid or disorderly..

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2 US dollar bill.

2 US dollar bill.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, is at 105.56, retreating from a nearly eight-week high of 105.91 reached last week.

The euro, which has been under pressure since the French president Emmanuel Macron called early elections at the beginning of the month, rises 0.3%, standing at $1.0727. However, the euro continues to lose 1.2% so far in June.

For its part, the spot yuan is trading at 7.26 units per dollar, close to its lowest level in seven months, affected by the general strength of the dollar and concern about the weakness of the world’s second largest economy.

Source: Ambito

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