The Dollar is Falling in Europe But Remains at High Levels

The dollar fell in Europe on Wednesday but remained at elevated levels as global growth concerns, caused by the ongoing outbreak of the Delta virus, prompted traders to reduce their positions on riskier currencies.

At 07:55 GMT, the dollar index, which measures the greenback against a basket of six other currencies, was down 0.1% at 93.093, just below its one-week high.

USD/JPY also rose to 109.59, EUR/USD rose 0.1% at 1.1719, after falling to 1.1702 in the Asian session, its lowest level since November 2020, while GBP/USD remained Largely unchanged at 1.3744, although UK inflation slowed more sharply than expected to 2.0%, the BoE’s target, in July.

analysts said the decline in UK inflation is likely to be temporary, pointing to sharp rises in household energy bills this year and continued pressure on supply chains. While US retail sales fell 1.1% in July, much more than the expected 0.3% decline, according to data released on Tuesday. This is on top of disappointing growth numbers from China earlier in the week

Investors are now looking to the minutes of the US Federal Reserve’s latest meeting, due to be released later today, for clues to the central bank’s timetable for reducing assets and raising interest rates.