As for the rise in the dollar, dealers are preparing for what is expected to be a strong inflation figure in the United States, today, Friday, while the Chinese yuan continued its gains, heading to record its best monthly performance since last November.
The pound sterling also appears on its way to record its best monthly performance against the dollar this year, and, at $ 1.4192, approached a 3-month high, supported by policymakers ’expectations of a possible rate hike next year, according to Reuters.
The pound’s gain of 2.7 percent during the month was also driven by the speed of the British vaccination campaign, and during May, the pound sterling was the best performer against the dollar among the ten most traded currencies.
Against the euro, the pound sterling reached 85.79 pence per euro, near the 5-week high of 85.615 pence, and against the yen, the pound reached its highest level in 3 years at 156.02 yen.
The Chinese yuan was another super-performing currency and accelerated this week. In internal transactions, the yuan recorded its highest level in 3 years at 6.3682 per dollar, which is up about 1.7 percent per month.
The euro stabilized at $ 1.2188 today, hovering near its highest level in 5 and a half months that touched it on Tuesday at $ 1.2266, as the easing statements from European Central Bank officials gained its momentum before a meeting on its monetary policy on the tenth of June. Reuters.
The euro rose 1.4 percent in May, and the dollar index declined 1.4 percent in the month and settled at 90.048 today.
As for the Japanese yen, which suffered losses on Thursday, it fell to a new low and reached its lowest level in 7 weeks at 109.96 per dollar in the Asian session.
As for cryptocurrencies, the price of Bitcoin reached 37,333 dollars, almost unchanged in the last 24 hours, but it is moving towards recording the largest monthly loss in about two and a half years. Ethereum fell 2 percent to $ 2,667 and is on track to post its first monthly loss since last September.
Gold is falling due to the rise of the dollar
In the precious metals market, gold prices fell, today, Friday, as the dollar and US Treasury yields rose, while investors awaited the release of personal consumption data in the United States later in the day to obtain indications of inflationary pressures.
By 0535 GMT, spot gold fell 0.2 percent to 1891.45 dollars an ounce, and the metal had gained about 0.6 percent since the beginning of the week, and is heading to record its fourth consecutive weekly gain.
US gold futures fell 0.3 percent to $ 1891.60, as reported by Reuters.
“Gold was in a somewhat defensive position,” said Edward Meyer, analyst at ED&F Man Capital Markets. Began to affect gold. “
He added, “It is likely that gold will hold around this $ 1900 level for a little longer. Perhaps we can see the start to move up again with the release of the next set of data if it indicates a further rise in inflation.”
As for the other precious metals, silver fell 0.8 percent to $ 27.64 an ounce, and platinum fell 0.3 percent to $ 1,175.44.
Palladium rose 0.3 percent to $ 2,814.36, as prices rose after Russia’s Nornikel forecast a bigger deficit in 2021.