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The dollar finds equilibrium as traders watch the key US inflation gauge.

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TOKYO – The US dollar found support in

Tuesday, as investors looked at US inflation data.

the week after softer-than-expected employment data declined but not

allay concerns about the anticipated reduction of the

monetary stimulus.

The euro reached $ 1.2178, a bounce of one

three-week low of $ 1.2104 set on Friday, but slightly below its

20-day moving average. The dollar also fell through its

20-DMA against the yen, and was up 0.15% to 109.42 yen.

The dollar index against a basket of six major currencies

stood at 90,059, not far from 89,533, a 4 1/2 month low

touched at the end of last month. Has been idle around while

Investors are trying to assess the recovery and the US policy response.

“Concerns persist that the Fed may begin to discuss the reduction

asset purchases at next week’s FOMC meeting, “said Philip Wee,

currency strategist at DBS Bank of Singapore. “Even more so after the US.

Treasury Secretary Janet Yellen’s comment that a higher

interest rates would be good for the economy, ”he added.

Yellen said the slightly higher rates “would actually be an advantage

for the point of view of society and the point of view of the Fed ”, during

a weekend interview with Bloomberg.

Still, the labor data on Friday, which showed

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payrolls increased by 559,000 in May, were below

expectations and eased concerns that the Fed will act soon.

“Not that the payroll numbers were weak. But why

so many expectations had been created in advance, the dollar

suffered a little setback, “said Shinichiro Kadota, senior

Forex strategist at Barclays.

The data helped pinpoint U.S. bond yields near their

Recent lows, which weighed on the dollar, while investors now looked at

to Thursday’s consumer price data for a new direction. But

nerves from strong readings, which could drive the case of

declining, they are also giving the dollar some underlying support.

Many investors are now waiting for the Fed to come up with a plan to cut

your bond purchase later this year, and the actual drawdown to begin

early next year.

The British pound fell 0.1% to $ 1.4157 and the

The Australian dollar fell slightly at $ 0.77444, even

although both have stagnated in the ranges observed in recent months.

With recent trading channels narrow, implied volatilities in

Both currencies have fallen to their lowest levels since early

2020, before markets were hit by the COVID-19 pandemic.

Elsewhere, the Mexican peso held firm at 19,835 against the US.

dollar, near its highest level since late January,

after the midterm elections they confirmed President Andrés Manuel López

Obrador’s MORENA party as the strongest force in the country,

but with a reduced majority.

In contrast, the Peruvian sol fell to a record low of

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3.9367 per dollar while the socialist Pedro Castillo advanced

of right-wing rival Keiko Fujimori in the country’s presidential elections.

electoral vote.

Cryptocurrencies were also heavy. Bitcoin was down 2% to

three-week low of $ 32,418, while Ether fell 4% to a

One week low of $ 2,431.93.

============================================== = = =====

Currency offer prices at 432 GMT

Description RIC Last US Closing Percentage Change YTD Percentage High Bid Low Bid

Previous change

session

Euro / Dollar $ 1.2178 $ 1.2190 -0.09% -0.32% +1.2194 +1.2178

Dollar / Yen 109.4150 109.2600 + 0.15% + 5.94% +109.4350 +109.2100

Euro / yen

Dollar / Swiss 0.8980 0.8976 + 0.04% + 1.50% +0.8980 +0.8974

Pound sterling / Dollar 1.4157 1.4177 -0.14% + 3.62% +1.4184 +1.4157

Dollar / Canadian 1.2088 1.2083 + 0.06% -5.06% +1.2090 +1.2078

Aussie / dollar 0.7747 0.7756 -0.13% + 0.70% +0.7763 +0.7743

New Zealand 0.7216 0.7230 -0.18% + 0.49% +0.7232 +0.7216

Dollar / dollar

All the places

Tokyo locations

Spots of europe

Volatilities

BOJ Tokyo Forex Market Information

(Report of Hideyuki Sano in Tokyo; additional report of

Tom Westbrook in Singapore; Edited by Ana Nicolaci da Costa)

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In-depth reports on the economics of innovation from The Logic, presented in association with the Financial Post.

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