June 20, 2021

FOREX-Commodity gains restrain dollar ahead of inflation data

The dollar hovered near multi-month lows on Tuesday with lofty commodity prices lending support to exporters’ currencies, though caution about U.S. inflation bringing forward rate rises kept the greenback from sliding.

The resource-sensitive Australian dollar sat by Monday’s two-month high and was steady around $0.7831. The similarly exposed Canadian currency, which hit an almost four-year high on Monday, held at C$1.2096 per dollar. The New Zealand dollar traded near its highest since February. Sterling was also perched near its highest since March on the dollar and strongest since early April on the euro , as investors cheered forthcoming lockdown easing and receding risks of another Scottish independence referendum.

However further moves were kept in check by looming U.S. consumer price figures due on Wednesday, as traders worry that a big number might prompt the Fed to wind back…

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