The US dollar demonstrated mixed performance during Monday’s quiet trading but remained strong in general. The Dollar Index remained near the highest level in three months.
The outlook for monetary tightening has been supporting the US currency for a long time. Last week, Federal Reserve chief Janet Yellen said in her speech that an interest rate lift-off is likely going to happen this year. The comments allowed the dollar to become the second best-performance currency during the previous trading week and resulted in bullish forecasts from market analysts.
The strength of the greenback has adverse affect on the commodity market. As a result, commodity-related currencies (like the Canadian dollar and the South African rand) are under pressure and demonstrate an underwhelming performance.
EUR/USD went up from 1.0830 to 1.0854 as of 16:25 GMT today, bouncing from the lowest level since May 27. GBP/USD traded near the opening level of 1.5588 after falling to 1.5537 intraday. USD/JPY edged up from 124.00 to 124.23.
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