US dollar starts the week at strong positions vs the majors getting support from the anticipated new interest rate revisions this year. At the same time, with lower global risks Japanese yen becomes less attractive.
On Monday, US Dollar index reached 90.28, hitting the 2-week peak recorded last Friday at 90.25.
Demand for the American currency was bolstered by the statements of US Federal Reserve regarding further upward revision of the interest rate this year amid stable economic growth.
As a result, the US dollar-to-yen exchange rate soared to 107.88. A weaker yen is explained by the better geopolitical situation, which leads to increasing optimism of investors. Specifically, North Korea's leader stated this weekend that all nuclear tests would be suspended given the upcoming US-South Korea summits.
The European currency dropped to 1.2251 today on the statement of ECB's Chairman Mario Draghi concerning stimulus programme.
The decline was also recorded in the GBP-USD pair at 1.4000. The sterling slackened after the BOE's representative said that the regulator was unlikely to lift the rate during the next May meeting.