London-Sana
The dollar hit a two-decade high today after inflation in the US fell less than the market expected, which means the Federal Reserve will be on its way to tighten monetary policy aggressively.
Reuters reported that the dollar index, which measures the performance of the US currency, rose against six major currencies by about one percent to 104.22, its highest level since December 2002.
The consumer price index rose 8.3 percent on an annual basis in April, down from 8.5 percent in March, but it exceeded economists' expectations of 8.1 percent.
The euro settled at $1.05,095 after receiving a boost last night as the European Central Bank boosted expectations that it would raise interest rates in July for the first time in more than a decade.
The single European currency fell to its lowest level in more than five years at 1.04695 dollars at the end of last month.
The yen rose 0.2 percent to 129.67 against the dollar, further away from its lowest level in more than two decades at 131.35, with 10-year Treasury yields falling to their lowest level in nearly two weeks at 2.862 percent in trading in Tokyo.
The British pound, which also tends to move with risky assets, fell to 1.2211 dollars for the first time in nearly two years.
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