U.S. dollar rises ahead of Fed meeting on Friday

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Dollar gain from Euro and pound; Currency markets look head to Fed meeting Graphic: World FX rates https: tmsnrt.rs 2 RBWI 5 E by Sinad Carew NEW YORK, June 11 - The euro and sterling shrugged off a temporary inflation number as likely to fluctuate on Friday. The dollar index was last up 0.46% at $1.2112 while the Euro was 0.13% at 90.4790. A day after the European Central Bank stuck to its dovish stance, economic policymaker Klaas Knot said that flexible fiscal rules would be needed for years as monetary policy continues to be constrained. ECB policymakers are saying that the rate of inflation lies far below the levels that are required to put upward pressure on rates, said Karl Schamotta, Chief Market Strategist at Cambridge Global Payments in Toronto. That's cutting away at Euro and putting downward pressure on it. The biggest contributor to the move we have witnessed overnight is the strength as opposed to positive dollar forces idiosyncratic. How Dollar did it win the beauty contest in reverse? Sterling was down 0.43% at $1.4115 and also dented by the rapid spread of the Delta variant in Britain, raising concerns that much of the country could not fully reopen on June 21 from lockdown as planned. You are seeing sterling weaken in the possibly aftermath of a delay of reopening, adds Schamotta. That certainly weighs on the probability of a rapid and full rebound, particularly on the consumption side. It pressures estimates and lowers the banking of England tightening even further into the future. The currency markets were all week very busy in anticipation of Thursday's release of the U.S. consumer price, which was 5% year-over-year in May. But even though the number was above expectations, there was little market reaction. Investors appeared to agree with the Federal Reserve's assertion that any increase in inflation would be temporary and that it seems too soon to discuss reducing its monetary stimulus. However, traders were looking ahead to the Federal Open Market Committee meeting scheduled for the week. Economists see a plan by the central bank in August or September to reduce its monthly bond purchase program, but don't expect it to begin making massive purchases until early next year, a Reuters poll found. Meanwhile, investors left riskier currencies such as the US dollar down 0.63% from the Australian dollar and the New Zealand dollar was 0.92% at $0.7129. In cryptocurrencies, the Bitcoin, which gained slightly in the last week before recovering, was on track for a 4% weekly gain and was again up 1.6% at $37,288 on the day. Ether was last set for a weekly decline of 0.4% but went for a 9% drop in the last 24 hours. Both are trading just below their earlier peaks. 18.00 U.S. - 1.2185 13.2650 Euro Yen 123.7600 0.63% 4.47% 1.2140 0.06% 0.49% 1.1981 Dollar Sterling 0.7892 - 0.43% 0.13% 3.41% 8.2484 Euro Sweden 10.0710 10.0362 0.35% - 3.41% 9.0409 Euro Yen 119.7600 127.6650 Euro Nepal 1.0882 $0.7773 Japanese Dollar $0.7220 2.2890 $1.4116 $

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