US Dollar Hits New Highs

Forex News

The growth in US Treasury yields and large-scale economic data contributed to the growth of the dollar in recent weeks, which highlights expectations of a steady increase in interest rates by the Federal Reserve this year. The US currency continues to strengthen its positions. The US dollar rose to new four-month highs against major currencies, and the dollar index rose 0.31% to 92.89 (the highest level since late December).

The euro was not able to recover after strong data on Germany's industrial production, and the EUR/USD pair fell 0.28% to 1.1889 (the lowest level for four months). The Federal Statistics Office said industrial production increased by 1.0% mom in March, the strongest increase since November and above expectations of a 0.8% rise. Seasonally adjusted exports grew by 1.7% while imports dropped by 0.9%, widening Germany's disputed trade surplus to 22 billion euros ($26.20 billion) in March.

Japanese yen strengthens, with USD/JPY pair at 109.02. The British pound was broadly lower. The GBP/USD pair fell by 0.34% to 1.3511 level. The Canadian dollar reached almost two-month lows, and the USD/CAD pair grew by 0.68% to 1.2966.