© Reuters. The dollar is growing at a summit a month and a half
Investing.com – The dollar has extended its early gains against a basket of currencies on Monday, rising to heights of a month and a half, under the effect of a rise in bond yields us, while the data are mixed in the private sector of the euro area fail to support the euro.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.37% to 90,41 at 05:20 AM (09:20 GMT), the highest level since march 1.
The Treasury yield us 10-year has continued to move closer to the level of 3% Monday, as the strengthening of the outlook for inflation has fuelled expectations of a monetary tightening more rapid on the part of the federal Reserve.
The dollar reached heights of more than two months against the yen refuge, with the USD / JPY rising 0.35% to 108,04.
The japanese currency is often sought in times of market turbulence and political tensions, and tends to decline with the return of investor confidence.
North Korea said Saturday that it was suspending its nuclear testing and missile, and that it would be discarded its nuclear test site prior to the summits with South Korea and the United States.
In addition to the concerns about the geopolitical risks, concerns about the relationship between the United States and China also seemed to calm down.
The euro slipped to lows of two weeks, with the EUR / USD down 0.43% at 1,2234.
The single currency found support after data showing that if the activity in the services sector in the euro area picked up in April, growth in manufacturing has slowed to its lowest level in 14 months.
This decrease is due, in part, to the appreciation of the euro that has weighed on export growth.
The british pound was also lower, with GBP / USD sliding 0.16% to 1,3979 after having ended the previous week lower at 1.71%.
The british pound fell last week after the governor of the Bank of England, Mark Carney, has indicated that the central bank might not raise its interest rates in may, following a wage growth data and inflation lower than expected.
