Currency movements were largely weak in the first hours of trading in Asia after a quiet session last night due to holidays in Britain and the United States, but the general mood was positive with the rise of global stocks.
The euro rose to $1.0860 despite some cautious comments from European Central Bank policymakers on Monday and data showing a decline in German business confidence in May.
Markets are awaiting German inflation data scheduled to be released tomorrow, Wednesday, and the broader euro zone data on Friday to confirm the expected cut in interest rates by the European Central Bank next week, as well as to obtain indications of how quickly the bank can make a subsequent cut decision.
The pound sterling settled near its highest level in more than two months and reached $1.2774 in the latest trading, while the New Zealand dollar rose about 0.1 percent to $0.6155, its strongest level since mid-March.
The Australian dollar rose 0.03 percent to $0.6657.
Markets are mainly focused on the US Core Personal Consumption Expenditures Price Index report, which is the Federal Reserve’s preferred measure of inflation, and is expected to remain unchanged on a monthly basis.
US interest rate expectations have been the main driver of the currency over the past few years, and the latest inflation reports from the world’s largest economy have been volatile, weakening policymakers’ confidence in the pace and size of interest rate cuts expected this year.
Against a basket of major currencies, the dollar index fell 0.01 percent to 104.55 points.
The yen fell to near the level of 157 to the dollar, and in the latest trading reached 156.87 to the dollar, after the Japanese currency was heading towards achieving its first monthly gain for the year 2024.
As for cryptocurrencies, Bitcoin fell 0.47 percent to $69,255, while the price of Ethereum fell 0.2 percent to $3,882.20.
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