Dollar recovers from four month lows

Dollar takes back some of last month’s hefty losses and rises on Monday, after falling last week after surprisingly bad set of US economic data

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

The dollar has risen almost half a percent against the euro, recovering some of its losses. According to analysts, factors related to US economy allied to rising US bond yields had helped deepen a correction that started late Friday afternoon. 

The euro, which reached its highest level since early February on Friday, is down 0.4 percent at $1.1408 against the dollar. 

On Friday US industrial production fell for a fifth straight month in April and consumer confidence declined more than expectations, taking the dollar down. 

Global markets are watching US inflation data, due on Friday and watched very closely since it might give a sign on the timing of the first rate hike by the US Federal Reserve since 2006. 

US Treasury yields, which also fell after last Friday’s weak data, rose on Monday. Ten year yields were up 2.2 basis points and rose to 2.16 percent. 

Due to tensions in the Middle East Brent crude added 50 cents to rise to $67.32 a barrel on Monday. ISIS took full control of Ramadi over the weekend.

Meanwhile, gold rose its highest price since February in reaction to the US data before pulling back down to $1,226.20 per troy ounce.

TRTWorld and agencies