Analysts said many factors could be behind the dollar’s recent rise, including worries about inflation in the United States and worries about the debt ceiling crisis and global economic growth which is paying off. to buy the currency, which is considered a safe haven.
Alvin Tan, head of Asian equity strategy at RBC Capital Markets, said rising US bond yields over the past two days have supported the dollar.
U.S. bond yields rose on Friday and Monday after consumers’ long-term inflation expectations rose to their highest levels since 2011 in a University of Michigan survey.
This leads to the possibility that the US Federal Reserve will raise interest rates again next month.
However, many investors in the market still expect the dollar to decline further in the coming months as inflation recedes and the Fed stops raising interest rates.
foreign exchange market movements
The euro rose 0.27% against the dollar on Monday, to $1.088, after falling 1.54% the previous week.
That helped the dollar index, which measures the value of the greenback against six other major currencies, fall 0.19% to 102.49 points, just below a five-week high of 102, 75 he had hit earlier in the session.
The dollar rose 0.18% against the Japanese yen, after rising 0.67% last week.
The British pound also rose 0.28% to $1.248, after falling 1.45% last week.
Meanwhile, Turkey’s presidential elections headed for a second round, which pushed the Turkish lira to its lowest level in two months.
The dollar rose 0.38% in recent trades to 19.654 against the Turkish lira, having earlier jumped to 19.7 for the first time since March 10, when it hit a record high of 19, 8 points during a volatile trading day.
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