The index took 0.82% to 105.00 points around 3:55 p.m. GMT (5:55 p.m. in Paris) after peaking at 105.06 points, a level not seen for 33 years.
The Dollar Index, which compares the greenback to a basket of other currencies, soared Monday to its highest since June 1989, taking advantage of its safe haven status and the prospect of further rate hikes by the US Federal Reserve (Fed ).
The index took 0.82% to 105.00 points around 3:55 p.m. GMT (5:55 p.m. in Paris) after peaking at 105.06 points, a level not seen for 33 years.
“The dollar has jumped because it is clear that the Fed will raise its rates to counter it”, explain the analysts of OFX.
The monetary institute meets on Tuesday and Wednesday, and a rise of 50 basis points is taken for granted, with some analysts, such as those at Barclays, even considering a rise of 75 basis points.
“The inflation data was not much worse than expected, but investors were really betting on the fact that it had peaked,” said Societe Generale analyst Kit Juckes.
The pound suffered particularly (-1.25% to 1.2161 dollars) while the Bank of England (BoE) will meet on Thursday.
It should raise its rates for the fifth consecutive time, but could remain limited to an increase of 0.25 percentage point “because of the data this morning”, comments Mr. Juckes.
GDP fell 0.3% in April after already contracting 0.1% the previous month, the Office for National Statistics (ONS) said.
Among the other big losers against the dollar, the yen hit its lowest level since 1998 at 135.19 yen and recovered slightly (+0.16% to 134.19 yen).
The euro meanwhile yielded 0.85% to 1.0429 dollars.
The currencies of emerging countries also melted against the king dollar: the Indian rupee thus hit a historic low at 78.28 rupees.
The Hungarian forint also sank to an all-time low of 384.72 forints to the dollar.
On the cryptocurrency side, bitcoin lost nearly 15% on Monday to $23,235, its biggest daily drop since March 2020 and the first confinements against Covid-19 and reaching a level not seen since December 2020.
Monday class Friday class
3:55 PM GMT 9:00 PM GMT
EUR/USD 1,0429 1,0519
EUR / JPY 139.96 141.38
EUR/CHF 1.0399 1.0392
EUR/GBP 0,8576 0,8541
USD/JPY 134,19 134,41
USD/CHF 0,9971 0,9880
GBP/USD 1,2161 1,2493