The euro continues its losses after inflation data

The euro extended losses on Tuesday after data showed that inflation in the eurozone hit a record high in May, but expectations that the European Central Bank will raise interest rates soon kept the single European currency on track for its best monthly performance in a year.

Inflation in the 19-country eurozone rose to 8.1 percent in May, compared to 7.4 percent in April, exceeding expectations of 7.7 percent as prices continued to rise, indicating that energy is no longer the only reason for increasing inflation.

The euro continued to decline against the dollar, and fell 0.6 percent to $ 1.0777 before recouping some of its losses. On a monthly basis, the euro rose nearly 2 percent, its best monthly performance in a year.

The euro’s losses supported the dollar, which is also benefiting from higher yields on US Treasuries.

The dollar index recorded 101.71, up 0.4 percent on the day, after falling to its lowest level in five weeks at 101.29 pm.

Commodity-linked currencies rose after news that European Union leaders had agreed in principle on Monday to cut most Russian oil imports by the end of this year, which also pushed up oil prices.

The Canadian dollar touched $1.2653, close to a one-month high, in the evening ahead of the Bank of Canada’s meeting on Wednesday.

As for digital currencies, Bitcoin recorded $ 31,600 after rising to exceed $ 32,000 in the evening for the first time in more than three weeks.