© Reuters. The dollar reached a low daily, while the euro rose
Investing.com – The dollar has extended its losses against a basket of other major currencies on Monday, hitting the lowest daily, helping the euro recover from recent lows of several months.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.28% 92,18 at 07:41 AM (11h41 GMT).
The index reached a high of four and a half months to 93,26 Wednesday before retreating after the data of inflation in american have moderate expectations of an acceleration of rate increases by the federal Reserve this year.
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 its support for rate increases gradual, given that the inflation has not yet reached the target of 2% of the american central bank in a sustained manner.
The euro rose, with EUR / USD up 0.39% at 1,1988, after having recovered from the low of the last week of 1,1821, a level that had not been reached since the end of December.
Investors monitor the political developments in Italy, because of the concerns raised by the increasing possibility of a populist government, which raises the prospect of new clashes with the european Union on the deficit targets.
The dollar was almost unchanged against the yen, with the USD / JPY at 109.47.
The pound has gained ground, with the GBP / USD up 0.39% to 1.3595.
The pound 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.
The new zealand dollar is lagging, with a decline of 0.24% to 0,6950 to hold above the low of five months of 0,6901 reached Thursday after the country’s central bank has left rates overnight. The next movement in rates could just as well be a reduction than an increase.