Forex – Dollar Posts Broad Gains, Hits 7-Week Highs

© Reuters. Dollar posts broad gains, hits 7-week highs – The dollar posted broad gains against a basket of the other major currencies on Monday, hitting seven week highs, boosted by rising U.S. bond yields.

The , which measures the greenback’s strength against a basket of six major currencies, was up 0.57% to 90.60 by 10:04 AM ET (14:04 GMT), the highest level since March 1.

The yield moved closer to the 3% level on Monday, as strengthening inflation prospects added to expectations for a faster rate of monetary tightening from the Federal Reserve.

The dollar received an additional boost after data showing that rose strongly in March, in what was a second straight monthly increase.

The dollar rose to more than two-month highs against the safe haven yen, with advancing 0.72% to 108.42.

The Japanese currency is often sought in times of market turmoil and political tensions and tends to decline as investor confidence returns.

said on Saturday it was suspending nuclear and missile tests and scrapping its nuclear test site ahead of planned summits with South Korea and the U.S.

Besides concerns over geopolitical risks, worries over between the U.S. and China also appeared to be easing.

The euro slid to two-month lows, with down 0.58% to 1.2217.

The single currency failed to find support after data showing that while activity in the service sector picked up in April manufacturing growth slowed to the lowest level in 14 months.

The decline was due, in part, to the stronger euro hitting export growth.

Sterling was also lower, with down 0.44% to 1.3941 after ending the previous week down 1.71%.

The pound fell last week after Bank of England Governor Mark Carney indicated that the central bank in May after recent weaker-than-expected wage growth and inflation data.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.