© Reuters. The dollar declines, the euro is gaining ground
Investing.com – The dollar was slightly lower Monday in the face of a basket of other major currencies after its recent rebound highs of several months in the face of lower forecasts of a tightening monetary intensive of the federal Reserve this year.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.23% to 92,23 at 03:42 AM (07:42 AM GMT).
The index has reached heights of four and a half months of 93,26 Wednesday before retreating, to finish the week almost unchanged, registering three consecutive weeks of gains.
The recovery of the dollar has lost some of its momentum after data on inflation in the United States have tempered the expectations of an acceleration of a rate hike by the Fed.
The Fed has raised its rates in march and has planned two further rate increases this year, although many investors rely on three increases.
Earlier Monday, the director of the Cleveland Fed, Loretta Mester, reiterated his support for gradual rises in rates, given that inflation has not yet reached the target of 2% of the american central bank in a sustained manner.
The euro rose, with the EUR / USD rising 0.26% to 1,1972, having rebounded from the low of the last week of 1,1821, a level not seen since the end of December.
The dollar appreciated slightly against the yen, with USD / JPY edging up 0.12 per cent to 109,53.
The pound has gained ground, with the GBP / USD rising 0.24% to 1,3576.
The pound has reached its lowest level in four months against the dollar on Thursday after the Bank of England has left interest rates unchanged as expected, but its forecasts for growth and inflation have been reduced for this year and next.
Elsewhere, the australian dollar is advancing, with an increase of 0.16% to 0,7553, which has enabled it to extend its recovery compared to 0,7411 with last week.
The new zealand dollar is lagging, with a decline of 0.19% to 0,6952 to be above the low of five months of 0,6901 reached Thursday after the country’s central bank has left its rates unchanged.