Dollar Rebounds From Recent Losses, Gains Ground Against Peers

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The U.S. dollar firmed up against other major currencies on Wednesday, rebounding from recent losses.

The dollar gained as the minutes from the Federal Reserve’s latest policy meeting showed some members felt it would be appropriate to discuss tightening its accomodative policy.

The dollar index rose to 90.29 before paring some gains. It was last seen at 90.18, up nearly 0.5% from the previous close.

The dollar’s rise was also due to the weakness in the stock market following Bitcoin’s tumble to its lowest level since January. The cryptocurrencies’ fall today was due to China’s decision to ban financial and payment institutions from providing digital currency services.

Among the greenback’s peers, the Euro dropped by about 0.5% to $1.2165, while the Yen was weaker at 109.26 a dollar. Data from Eurostat showed euro zone inflation accelerated as expected in April because of a sharp rise in the costs of energy and services. The data said consumer prices in the 19 countries sharing the euro rose 0.6% sequentially and 1.6% from a year earlier, up from the 1.3% annual increase in March.

The Pound Sterling drifted down nearly 0.6% to around $1.4105. U.K. consumer price inflation exceeded expectations in April on higher energy prices, separate data showed, with prices advancing 1.5% year-on-year in the month, more than double the 0.7% rise seen in March. A similar higher rate was last seen in March 2020.

The Canadian dollar weakened against the dollar, sliding nearly 0.7% to $1.2140 after Canada’s inflation accelerated in April, and crude oil prices declined sharply on demand worries and data showing an increase in inventories.

The material has been provided by InstaForex Company – www.instaforex.com

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