The dollar nursed losses on Thursday as optimism about China’s reopening was supported by encouraging data and underpinned Asian currencies, while sticky inflation had the euro eying its best week in a month and a half.
The dollar lost 0.9% on the euro overnight, and since it moved lower despite U.S. yields rising some are speculating it might have peaked as February’s rally runs out of steam.
The euro is up 1.2% on the week and last bought $1.0667 with hotter-than-expected German inflation in February adding to pressure on the European Central Bank to raise rates following unexpectedly strong readings in France and Spain.
“The turn in the dollar came right on schedule as month end flows fizzled and the dominant driver of euro/dollar, rate differentials, reasserted itself,” said Brent Donnelly, president of analytics firm Spectra Markets.
Euro zone inflation data is due later in the day.
The yen hardly budged but the dollar made broad falls on Asian currencies as it retreats from recent highs.
This report’s information was first seen on ZAWYA; to read more, click this link.
