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The dollar at its highest since the end of March against major currencies

2021-08-11T04:45:41.606Z


A safe haven in a context of international economic uncertainty, the greenback is benefiting above all from the US recovery.


The dollar has settled at a peak since late March on Tuesday against the euro, galvanized by data on US employment that could lead the US Federal Reserve (Fed) to tighten its monetary policy.

Read also: The Fed could start reducing its asset purchases as early as October

Around 9:15 p.m., the greenback climbed 0.13%, hitting $ 1.1722 for one euro, a first since March 30. The euro was approaching its lows of the year 2021. During the session it slipped to 1.1715 dollars, a low since the beginning of November 2020. The dollar index, which compares the greenback to a basket of others major currencies, rose 0.11% to 93,044 points, also a high since the end of March.

"The greenback has reached new highs against its British, Canadian and Swiss rivals, while the euro has fallen to new lows for four months," said

Joe Manimbo of Western Union.

"The dollar has resumed its summer surge after strong employment data last week that paves the way for the Federal Reserve (Fed) to reduce its emergency support measures

,

"

he added.

He also pointed to

"a chorus of Fed officials this week"

who pleaded for the central bank to reduce its asset purchases before the end of the year.

Among them, Boston Fed Chairman Eric Rosengren ruled in a press interview on Tuesday that the Fed should announce its reduction in asset purchases in September given the solid progress of the recovery.

This schedule is a little faster than what economists say on average.

Concern about the Delta variant

The dollar is also creating a safe haven appeal amid concerns about the spread of the Delta variant that could slow global growth.

"The Fed is making great

strides

towards the normalization of its policy,"

said Ipek Ozkardeskaya of Swissquote, enough to make the US currency more attractive to investors.

Currency traders are now awaiting US inflation figures for July, due Wednesday for consumer prices (CPI).

We expect an increase of 0.5% over the month, after + 0.9% in June and + 5.4% over one year.

Read also: The "helicopter currency" to boost the recovery

Unperturbed, the pound sterling continued to advance on Tuesday against the euro, returning to a level more seen since the end of February 2020 against the latter, again echoing the prospect of a "slight tightening" in monetary policy mentioned on Thursday by the Bank of England (BoE). The British currency was up 0.08% to 84.69 pence.

Source: lefigaro

All business articles on 2021-08-11

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