US dollar strengthens on data

The dollar strengthened on Monday as investors looked for safe places to put their money as conflict in the Middle East seemed to be getting worse by the day. In addition, new data showed that US industrial output was up in June, and US Federal Reserve chairman Ben Bernanke is expected to leave the door open to further interest rate hikes when he testifies before the Senate Banking Committee on Wednesday.

The US currency was 0.9 percent higher to $1.2524 versus the euro after going as high as $1.2511 earlier in the day. In addition, the dollar was up 0.8 percent in relation to sterling, to $1.82, while it added 0.6 percent against the Japanese yen to ¥117.07.

The Swiss franc was 0.9 percent lower versus the US dollar, to SFr1.248.

Reports that consumer price inflation in the Eurozone was at 2.6 percent in June, right where it had been in May, the euro weakened slightly, dropping 0.1 percent versus sterling to £0.6879, while it was down 0.2 percent in relation to the yen, to ¥146.64.

The yen declined to eight-year lows against both sterling and the Swiss franc to ¥213.85 and ¥94.34 respectively.

Elsewhere, the Icelandic krona was down 1.3 percent to IKr96 in relation to the euro.

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