Dollar Holds onto Its Gains as Investors Await US Data, Hoping For Indications on Policy

Today, Monday, the dollar clung to its recent rally, as investors were cautious at the start of a week full of central bank meetings and important US economic data to elicit indications of global inflation outlook and the reactions of policymakers.

Trading was limited due to a holiday in both Japan and China, which limited volatility, which made the US currency at the same level at settlement after a jump on Friday. It settled at 1.2020 against the euro and reached a three-year high against the yen at 109.58.

The dollar index, which measures its performance against six major currencies, settled at 91.322.

The index fell 2 percent in April, as a positive outlook for the global recovery prospects lifted currencies exposed to trade at the expense of the dollar, but changed direction in light of positive consumption data in the United States on Friday.

The rise in the Australian and New Zealand dollars was slight today, which was not enough to offset their losses on Friday.

The Australian dollar rose 0.1% to $0.7718, to be near its average moves in 20 days, while the New Zealand dollar rose 0.2% to $0.7171, to be also slightly higher than its average moves in 20 days. The British pound settled at $1.3825.

As for Asia, the Chinese yuan reversed course and turned down to 6.4781 per dollar in foreign trade, after strongly worded statements from US Secretary of State Anthony Blinken.

The South Korean won hit a low of a week after North Korea pledged to respond to what it considers hostile US policy, while pressure for a nationwide lockdown in India pushed the rupee to decline slightly.

In the cryptocurrency markets, Ethereum broke the $3,000 barrier to record a new high at $ 3061.17.