The dollar rose to the highest in eight months versus the euro as an increase in short-term U.S. Treasury yields signaled mounting speculation that Federal Reserve Chair Janet Yellen will need to raise interest rates.
The greenback extended gains after U.S. consumer prices rose in June, adding pressure on the Fed to tighten policy sooner, while the European Central Bank has introduced unprecedented stimulus. Indonesia’s rupiah weakened from a two-month high as a presidential candidate rejected the election as undemocratic. Russia’s ruble headed for the strongest gain in a month.
“That’s not a data response — that is a market that’s looking to sell euro,” Greg Anderson, head of global foreign-exchange strategy at Bank of Montreal, said by phone from New York. The U.S. data was “not much of a surprise, just tiny bit soft on the core.”
The dollar appreciated 0.3 percent to 1.3480 per euro at 8:47 a.m. New York time, after touching $1.3459, the strongest level since Nov. 21. The euro fell 0.3 percent to 136.73 yen. The Japanese currency was little changed at 101.43 per dollar.
The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, rose 0.1 percent to 1,010.45 after advancing to 1,011.76, the highest level since June 18.
via SOURCE
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.