Dollar rises amid strong US economy and haven demand

Posted on May 29, 2023   |  

The dollar rose to a 2-month high against the euro and a 6-month high against the yen as the U.S. economy led traders to reduce their stakes on rate cuts in 2023.

For the 1st time, the dollar reached $1.07425 per euro in the Asian session since March 24 and stayed elevated to the last trade at $1.0748. 

The U.S. dollar index, which measures the currency of 6 major countries including the euro and yen, hit a 2-month high of 104.01.

The Atlanta Federal Reserve Bank predicts that the US economy will grow at 2.9% in the second quarter.

The pound dropped to a 5-week low against the dollar of $1.2358 and was last down 0.42% after British inflation slowed less than market expectations. 

The pound sterling fell behind the euro too, which was last down 0.26% at 1.1495, and since March 2009, Sweden’s krona SEK reached 11.544 crowns per euro.

The dollar strengthened 0.99% against the crown, while NZD fell by 2.3% against the USD to 0.61040.