The Dollar Catches a Breath After The Growth of US Industrial Production

The dollar clung to its slight gains during Wednesday, June 2, rising from its lowest levels in nearly five months against other major currencies, as the improvement in industrial production in the United States led to continued speculation that the Federal Reserve would return to adopting usual policies quickly.

The dollar index, which measures the performance of the greenback against 6 other major currencies, hovered slightly below the 90 level, after falling to 89.662 on Tuesday, approaching its lowest level since January 7 at 89.533.

The euro also reached 1.2219 dollars, after it fell from near the peak of several months last night, when it reached 1.22545 dollars.

Investors are tracking the trajectory of the yuan’s recent gains. The Chinese currency was little changed at 6.3823 against the dollar in offshore trading, after retreating from a three-month high of 6.3526 against the dollar on Monday, before policy makers adopted decisions to curb it, including raising the mandatory reserve of banks from hard currency.

Sterling remained low at $1.41515, after falling from a three-day high of $1.4250 hit yesterday. The Canadian dollar recorded 1.20675 against its American counterpart after it rose last night to a peak of 1.2007 against the US dollar with the rise in oil prices.