The dollar is approaching its highest level since early April

The US dollar is nearing its highest level since early April against the euro on Monday, as financial markets look to this week's Federal Open Market Committee (FOMC) meeting for a clue. Clues about the timing of stimulus reduction.

According to Arab Net, the US currency also approached a 12-day high against the safe-haven yen, as record-high US stock markets boosted risk sentiment. .

The dollar index, which measures the currency against six major peers, settled at 92.920 at the start of the week, far from a more than 3-month high hit last week at 93.194. . It is still up about 3.8% from a recent low hit on May 25, as an improving US economy boosted expectations that the Fed would begin to scale back asset purchases early this year.

The Commonwealth Bank of Australia expects the dollar to continue consolidating its gains this week on the back of the possibility of the Federal Reserve moving towards a gradual tapering of monetary easing at the conclusion of its meeting that ends on Wednesday.< /p>

The rise in Covid-19 infections in the United States poses a risk to such expectations, after the Federal Reserve, at its last meeting on June 16, broadcast a signal that the virus Corona is a burden on the economy.

The dollar index gained 0.2% last week, benefiting from safe-haven demand amid concerns that rising infections in a rapidly spreading variable delta could derail the global recovery, But it trimmed these gains with a strong rise in shares.

The dollar was trading today at 1.17655 per euro, close to the highest level recorded last week at $1.1752, a level not seen since April 5, and against 110.56 yen, Approaching Friday's peak at 110.58, the highest since July 14.

The Australian dollar fell 0.1% to $0.7356, after falling to an almost eight-month low of $0.72895 last week, as half of the country's population suffered from The closure caused by the spread of COVID-19.

The British pound was trading at $1.3745, little changed from last week, when it rebounded to $1.3787 from a nearly six-month low of $1.3725, touching it Just two days ago.