Home Economy Dollar set for second consecutive monthly loss vs euro and pound

Dollar set for second consecutive monthly loss vs euro and pound

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Rolled Euro banknotes are placed on U.S. Dollar banknotes in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar came under pressure on Monday and was heading for its second consecutive monthly loss against the euro and the pound, as traders assessed the impact of a surge in U.S. inflation before monthly jobs data later this week.

With London and New York markets closed for a holiday, the dollar index of major currencies fell 0.1% to 90.044 at 1350 GMT

On Friday, data showing a key measure of U.S. inflation at a 29-year high briefly boosted the dollar to a two-week high.

The euro was flat at $1.2195, off Friday’s low of $1.2133. The British pound edged 0.1% lower at $1.4173 .

In holiday-thinned trade, investors weighed the impact on U.S. assets of rising price pressures and a dovish Fed. Despite rising inflation, markets don’t expect a rate hike well into the back end of 2022.

The core PCE price index vaulted 3.1% on…

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