The dollar fell during trading on Monday, losing some of the gains it made on the back of strong US employment data released on Friday as currency markets retreated from their initial reaction. While gold prices rose.
The higher-than-expected US employment data last week boosted the dollar’s strength against the major currencies. Traders saw the data as an indication that the Federal Reserve may raise interest rates further to tackle inflation.
But this rise was reversed in early European trading on Monday, with the dollar index falling to 106.25 by 07:50 GMT, down 0.4 percent, compared to its highest level in ten days on Friday at 106.930. Markets are now awaiting the release of US inflation data on Wednesday to receive more indications of the activity of the world’s largest economy. Analysts polled by Archyde.com had expected annual inflation to decline to 8.7 percent in July, compared to 9.1 percent previously.
The dollar fell against the Japanese currency to 134.945 yen. Bond yields in the euro zone fell again after rising in the wake of Friday’s employment data. Italian bonds seemed to ignore Moody’s decision to cut Italy’s outlook.
The euro rose 0.2 percent to 1.02095 dollars. The British pound rose 0.4 percent to $ 1.2118.
Gold turned higher as the dollar and Treasury yields fell, with attention this week focused on US inflation data. And gold rose in spot transactions 0.5 percent to 1782.36 dollars an ounce (an ounce) by 12:52 GMT, after declining one percent in the previous session. And US gold futures rose 0.4 percent to $ 1798.40.
As for other precious metals, silver rose in spot transactions 2.1 percent to $ 20.28 and is on its way to recording its best daily performance in more than a week. Platinum rose 0.6 percent to $938.01 and palladium rose 3.8 percent to $2,206.87.