The dollar clings to its recent gains before inflation


The dollar clung to its recent small gains on Wednesday, as traders awaited US inflation data and the European Central Bank meeting to gauge the pace of global recovery and see what policy makers are thinking about reducing stimulus programs.

The meeting is scheduled to be held, and inflation data will be released tomorrow, Thursday, and the state of anticipation has ended any fluctuations in the major currencies, with traders waiting for what will result from them. The euro settled at 1.2179 dollars in the Asian session, while the dollar stopped at 109.47 yen.

The Deutsche Bank Currency Volatility Index recorded its lowest level since February 2020 yesterday and fell further today. The dollar index was little changed at 90.077.

The Australian and New Zealand dollars fell within narrow ranges, and the first recorded $0.7744, which is almost in the middle of its range over the past two months, as did its New Zealand counterpart, recording $0.7199.

The pound rose slightly, but remained within its range in the recent period, with doubts creeping in whether plans to reopen Britain to business activities scheduled for June 21 will be postponed due to the high infections with the Delta strain of the Corona virus. Sterling stood at $1.4168.

The Chinese yuan settled at 6.4 against the dollar today, with the passage of a bill aimed at competing with China in the US Senate, to dampen the enthusiasm of those who bet on the rise of the Chinese currency recently.


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