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Currency: The dollar reached its highest level in three months

10/03/2021
Source : ORISHAS FINANCE
Categories: Economy/Forex

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Inflationary fears are growing in the market with the green light from the US Senate for a giant stimulus plan. After US employment, the dollar is at the highest level against the euro.

The dollar hit a three-month high against several other currencies on Monday. Around 19:50 GMT (20:50 in Paris), the dollar gained 0.50% against the euro, at 1.1855 dollars per euro, after rising to 1.1915 dollars, the highest since the end of November.
The dollar index, which compares the greenback to other major currencies, was also trading at its highest in just over three months.
“The prospect of a sudden rise in inflation frightens investors, who sell bonds,” which raises bond market rates and makes the dollar more attractive, explains Ricardo Evangelista, an analyst at ActivTrades.
In addition, the American Central Bank (Fed) could be forced to act to counter inflation by tightening monetary policy, which would benefit the

dollar.
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