On Friday, May 28, the USD progressed further succeeding its jump from more than four-month of plunge whereas the Japanese yen continues to flop.
The greenback keeps rising as investors await the country’s inflation data to set the currency’s path.
The U.S. dollar index topped in the late European and Asian session which traded up by 1.0% on the day at 90.78.
The new unemployment benefits claim of North Americans dropped more than expected last week.
Later in the session, U.S. President Joe Biden is expected to announce his full budget after sitting at the office in January.
It was reported that Biden will pursue $6 trillion in federal spending for the 2022 fiscal year.
Since the United Kingdom and the United States both had public holidays last Monday, the dollar’s gains might be attributed to month-end calls.
This trade is a move that prompts analysts to note that the Japanese government is considering the rise in unemployment. Meanwhile, a fall in consumer prices amid the extension of pandemic curbs is also anticipated.
However, an analyst stated that investors must not delude themselves, since this situation will not affect the Japanese monetary policy.
Among the G10 countries, the Japanese yen is now considered the most underperforming currency this week. It is also expected to fluctuate against its non-dollar counterparts.
Along with the Japanese yen and U.S. dollars, the following are the other currency movements.
Starting with the euro that fluctuated at 1.0% at $1.22, it hovers below its recent high of $1.23.
This goes along with the dovish statements from European Central Bank officials that eroded its momentum ahead of the policy meeting on June 10.
Meanwhile, the Chinese yuan hit a new three-year high where it traded at 0.16 against the U.S. dollar.
On the other hand, the British pound fell by 0.2% at $1.41 which is on track for its best months in contrast to the dollar so far this year.
Lastly, the Australian dollar also sank by 0.3% at 0.88.