The dollar is falling against the euro and pound

The euro and sterling rose against the dollar on Monday in quiet trade amid the holiday season in the United States while risk appetite improved globally.

With US markets closed for the Independence Day holiday, markets expected light trading on Monday and major currencies gained ground at the expense of the dollar, which rose to a two-week high on Friday.

The euro rose 0.3 percent to $1.0457, while the sterling rose 0.5 percent to $1.2155, after hitting a two-week low on Friday of $1.1976.

But amid fears of a global recession, the euro remained near its lowest level in five years against the dollar, which is considered a safe haven.

The war in Ukraine and its economic repercussions, especially the rise in food and energy prices, were among the reasons for the decline of the euro, which fell by eight percent against the dollar this year.

It was also affected by the difference in the European Central Bank’s response to the Federal Reserve’s response to rising inflation.

Friday’s data showed that inflation in the euro zone rose to a new record, strengthening the European Central Bank’s argument for a rate hike on July 21, albeit by only a quarter of a percentage point.

The dollar index fell 0.15 percent to 104.9, not far from its highest level in 20 years, which was recorded two weeks ago, which amounted to 105.790.