Title: Dollar near 2-month high vs yen, Chinese yuan scales 3-year high

May 31, 2021 12:15AM ET

By: AnalysisWatch

The greenback held close to a two-month excessive towards the yen on Monday after a key degree of U.S. inflation confirmed more potent fee profits than anticipated, preserving alive expectancies of an eventual tapering the Federal Reserve's asset shopping for.

The Chinese yuan, which has been supported via way of means of a sturdy monetary recovery, prolonged a current rally to three-yr highs at the same time as Chinese government seemed to try and reduce its upward thrust.

The greenback ticked down 0.2% to 109.64 yen in an alternate ruled via way of means of month-quit greenback promoting from Japanese exporters, however stood now no longer some distance from Friday's top of 110.20, which became its maximum due to the fact that early April.

The middle non-public intake expenditures (PCE) fee index, the Federal Reserve's desired gauge of inflation, rose 3.1% from a yr. ago, a tad above marketplace expectancies for a 2.9% upward thrust.

Although the excessive studying became due partially to the bottom effect - expenses have been depressed in April 2020 due to strict lockdowns - and its annual upward thrust is anticipated to slight later this yr., a few buyers remained nervous.

For now, though, the records had restricted effect on buyers' expectancies that the Federal Reserve will preserve the modern-day tempo of asset buy for lots months, earlier than tapering it.

U.S. debt yields dropped in a shortened consultation on Friday earlier than an extended weekend as month-quit shopping for crushed records.