The dollar rose today, Monday, as inflation concerns returned after the sudden announcement by major oil producers to cut production further. The announcement by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, came after data showed a slight increase in consumer spending in the United States in February following a significant rise the previous month. Inflation showed some signs of easing, although it remains high.
The euro dropped 0.44% to $1.0791, after hitting a one-week low of $1.0788, while the Japanese yen fell 0.46% to 133.41 per dollar. The British pound reached $1.2277, down 0.45%. The dollar also increased by 0.32% against the Swiss franc.
The dollar index, which measures the U.S. currency against six major currencies, rose 0.078% to 103.01, surpassing the 103 mark for the first time in a week.
The OPEC+ cuts caused a spike in oil prices of over 6% today. The announcement of cuts came ahead of a virtual meeting of the OPEC+ ministerial committee, which includes representatives from Saudi Arabia and Russia, and was expected to reaffirm the commitment to the existing cuts of two million barrels per day until the end of 2023. Instead, oil producers announced further cuts of about 1.16 million barrels per day yesterday, Sunday.
In the cryptocurrency market, Bitcoin fell 2.43% in the latest trading to $27,703.00, while Ethereum dropped 2.27% to $1,776.40.
