US Dollar is hovering at the highest level in 6 weeks ahead of the announcement of economic data

The dollar hovered at the highest level in six weeks ahead of the announcement of economic data that may help determine the direction of interest rates in the future, while the euro fell ahead of the announcement of monthly data on corporate activity.

Strong data for the US labor market and the continuation of inflation at high levels raised expectations of continuing to raise US interest rates, and supported the dollar’s rise this month.

After a quiet day on Monday for the President’s Day holiday in the United States, the dollar traded at 134.65 yen, up 0.3 percent. It rose 0.2 percent against the euro at $1.0665.

The dollar index is heading towards recording an increase for the fourth week in a row, and has risen 1.7 percent since the beginning of February, but it has settled at about 104, retreating from its highest level in six weeks, which it recorded on Friday, at 104.67.

The Australian dollar fell 0.5% to $0.6878, giving back some of its gains on Monday.

The pound sterling fell 0.3 percent against the dollar to $1.20065, but it performed better against the euro and traded at 88.81 pence.