Dollar rises as inflation fears return after the OPEC + surprise

The dollar rose on Monday as fears about inflation returned after the surprise announcement by major oil producers to cut production further.

The announcement by the Organization of the Petroleum Exporting Countries and its allies, in what is known as the OPEC + group, came after data showed on Friday that consumer spending in the United States increased slightly in February after rising significantly in the previous month, and inflation showed some signs of calming, although it is still high.

The euro fell 0.44 percent to $1.0791, after touching a one-week low of $1.0788, while the Japanese yen fell 0.46 percent to $133.41 per dollar.

The pound sterling reached $1.2277, down 0.45 percent. And the dollar rose 0.32 percent against the Swiss franc.

The dollar index, which measures the US currency against six major currencies, rose 0.078 percent to 103.01, crossing the threshold of 103 for the first time in a week.

The OPEC+ cuts caused oil prices to jump by more than six percent on Monday.

The announcement of the cuts came ahead of a virtual meeting of the OPEC+ ministerial committee, which includes representatives from Saudi Arabia and Russia, which was expected to renew commitment to the cuts of two million barrels per day already in place until the end of 2023.

Instead, on Sunday, oil producers announced further production cuts of about 1.16 million barrels per day.

In terms of cryptocurrencies, Bitcoin fell in the last trading session by 2.43 percent, to $ 27,703.00. In the latest trading, Ethereum fell 2.27 percent to $1,776.40.