The dollar fell slightly from its highest level in five weeks, today, Monday, after continuing to rise for a period of time that confused analysts.
Meanwhile, the Turkish lira fell to its lowest level in two months as the presidential election appeared to be headed for a run-off, while the Thai baht rose after a more decisive election result.
The euro rose 0.27% against the dollar today, Monday, to $1.088, after declining 1.54% in the previous week.
This helped the dollar index, which measures the value of the US currency against six other major currencies, decline, by 0.19% to 102.49 points, just below its five-week high of 102.75 points, which it touched earlier in the session.
Analysts said that there are many factors that may be behind the recent rise in the dollar, including concerns about inflation in the United States and concerns about the crisis of the debt ceiling and global economic growth that pays to buy the currency, which is considered a safe haven.
Alvin Tan, Head of Asian Stocks Strategy Department at RBC Capital Markets, said that the rise in US bond yields over the past two days supported the dollar.
US bond yields rose on Friday and Monday after consumers’ long-term inflation expectations jumped to their highest levels since 2011 in a University of Michigan survey. This leads to the possibility that the Federal Reserve (the US central bank) will raise interest rates again next month, and dealers believe that this will happen by 11.5 percent.
The dollar rose 0.18% against the Japanese yen, after rising 0.67% last week.
The pound sterling rose 0.28% to $1.248 after falling 1.45% last week.
The dollar rose in the latest trading 0.38% to 19.654 against the Turkish lira, after it jumped earlier to 19.7 for the first time since the tenth of March, when it hit a record level at 19.8 points in a volatile trading day.
The Turkish elections headed towards a run-off after President Recep Tayyip Erdogan exceeded expectations.
The dollar fell 0.75% to 33.725 baht in transactions in Thailand.
And Thailand’s opposition parties achieved a stunning victory in the elections that took place on Sunday, but it is not yet certain whether they will form the next government under parliamentary rules set by the military junta.
Many investors expect the dollar’s decline to continue in the coming months as inflation recedes and the Federal Reserve stops raising interest rates.