US dollar set to log highest monthly gain in one-year. US-Iran war, job data in focus
The US dollar is set for its largest monthly gain in a year, rising 2.5% in June due to safe-haven demand amid US-Iran tensions and Federal Reserve rate hike expectations. The euro, sterling, and Australian dollar are all facing declines as market uncertainties grow.
The US dollar was on track for its biggest monthly gain in nearly a year, boosted by safe-haven bets amid the US-Iran war in the Middle East and expectations of Federal Reserve interest rate hikes.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was a shade higher at 101.36. It is now on track for a 2.5% gain for June, which marks the biggest monthly advance since July last year, Reuters reported.
The euro was flat at $1.1387 after hitting a 13-month low against the dollar last week, and was on track for a 2.3% monthly decline. Sterling traded 0.1% lower at $1.3198 and was down 2% for the month. The Japanese yen last traded at 161.75, continuing to languish near a 40-year low.
The risk-sensitive Australian dollar fetched $0.6885, down 0.1% in early trade and heading for a 4.1% monthly decline. The New Zealand dollar was little changed at $0.5635, down 5.9% for the month, Reuters reported.
The US-Iran war escalated during the weekend as both the countries traded fresh barbs before they agreed to stop tit-for-tat attacks and meet in Qatar on Tuesday.
The renewed conflict in the Middle East has continued to stoke inflation pressures, while a surprisingly hawkish comments from the US Federal Reserve chairman Kevin Warsh earlier in the month has reversed market expectations for US rate cuts this year.
Investors now await the US non-farm payroll and unemployment rates due this week, which could offer fresh clues on the strength of the labour market and the outlook for Fed policy.
Meanwhile, crude oil prices rose following strikes that again slowed energy shipping in the Strait of Hormuz, supporting safe-haven demand for the greenback.
(With input from agencies)
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Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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