Greenback Moves Higher Against Other Majors to New High

The U.S. dollar was seen mostly higher against other major currencies on Monday when the dollar index touched a high of 94.496 on Monday which is the highest seen since November last year. The dollar index which measures the currency’s against six other major currencies is now at around 94.376 from Monday’s previous high.

The euro was seen down at around a six and a half month low against the U.S. dollar later during Tuesday’s trading as investors saw a weak outlook caused by Italy heading into elections which will appoint former International Monetary Fund official as the interim prime minister tasked with snap poll planning as well as the passing of the next budget.

The White House also confirmed recently that President Donald Trump, as well as Japanese Prime Minister Shinzo Abe, have discussed through a phone call that they would be meeting prior to expectations of a summit between the United States and North Korea.

Recent Dollar Movement

By the end of April, the greenback has started to move higher against other currencies when the dollar previously traded down on various factors including geopolitical concerns as well as comments from U.S. President Donald Trump regarding the currencies of Russia and China in the midst of the U.S. raising its own interest rates.

This led to China accusing the other of sending confusing messages following Trump’s Twitter post stating that Russia and China are playing the currency devaluation game as the United States continued to raise rates.

The U.S. dollar then remained mostly optimistic by the end of April and was seen up by as much as a four-month high when ten-year treasury yields rallied by around 3%. The decline of the euro at the end of April also pushed the U.S. dollar higher.

Despite a slightly weaker sentiment from the Federal Reserve at the beginning of the year, the central bank still made a statement that the recent rise in the inflation rate in the United States is now closed to their target and is now projected to be sustained. The Fed also projected that it inflation is expected to run on a 12-month basis near the committee’s symmetric 2% objective in the medium term.

While the U.S. dollar edged slightly lower last May 11 due to a weaker than expected inflation data and consumer prices data, the dollar was still on track for a four-week high with the dollar index showing a 0.2% growth. Last week, the dollar was down slightly on the release of the latest Federal Reserve meeting minutes that showed a dovish outlook from the fed as well as effects of Trump’s recent tariffs on a number of imports.

See also: Greenback Eases Back from Four and a Half Month High

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