Dollar Reaches 2-Week High on Upbeat U.S. Data

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By Jacob Maslow

The dollar soared to two-week highs on Monday following upbeat U.S. inflation data, allowing the greenback to edge higher against rival currencies.

USD/JPY rose 0.42% to trade at 113.13.

The American currency traded higher after data released last week revealed that U.S. core inflation figures rose at its fastest rate in four years last month, boosting expectations for additional interest rates increases this year.

EUR/USD shed 0.59% to trade at 1.1065.

The euro declined after the Flash Euro Zone Composite Output Index, which is tracked by research group Markit, fell from 53.6 to 53.0.

French data also revealed that the country’s private sector activity contracted in January, while business activity in neighboring Germany slowed down significantly, matching seven-month lows.

Elsewhere, the dollar was stronger against the sterling and the Swiss franc, with GBP/USD falling 1.61% to a 3-week low of 1.4174 amid continuing fears of London exiting the EU, while USD/CHF gained 0.39% to trade at 0.9944.

Meanwhile, the Australian and New Zealand dollars were higher against their American rival, with AUD/USD advancing 0.56% to trade at 0.7191. NZD/USD also inched up by 0.47% to trade at 0.6664.

USD/CAD was steady at 1.3773 as commodity-related currencies found support as oil prices inched up above $32 a barrel on Monday, following reports of reduced oil drilling activity in the United States.

The U.S. dollar index gained 0.62% at 97.22, the highest since the 8th of this month.

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