Currencies are trading in degraded order on Monday. While the dollar reached its highest level, the yuan traded on Monday at its lowest level in five months against the dollar and the Russian ruble weakened slightly

The dollar rose by 1.6% against a basket of six major currencies last week. A troubling surprise at the rise in American inflation has cast doubt on bets on a fall in American rates, while European policymakers have reported a reduction within a few months. The dollar hit a 34-year high against the yen, reaching 153.69. It hit a five-month high for the euro on Friday and traded close to these levels at the start of the Asian day, buying one euro for $1.0646

Australian and New Zealand dollars rebounded on Monday after a strong selloff last week triggered by growing fears of an expanded Middle East conflict, while the still solid demand for a carry trade in the Japanese yen also helped both dollars & worsen; stabilize. Kiwi rose slightly by 0.2% to $0.5950, after falling 1.0% on Friday to $0.5934, its lowest level in five months. Aussie rose 0.3% to $0.6485, after falling 1.1% on Friday to $0.6456, its lowest level in two months. Both were hit on Friday as markets prepared for an Iranian attack on Israel in response to an alleged Israeli attack on the Iranian consulate in Syria on April 1

In addition, the Chinese yuan traded at its lowest level in five months against the dollar on Monday, but the currency avoided major losses as Beijing continued to set a high official policy rate. The yuan was trading at 7.2382 per dollar at 02:48 GMT, a figure barely changed from the previous close but very close to the weakest side of the 2% daily trading band. The spot yuan opened at 7.2355 for one dollar and was changing hands at 7.2382 at noon, 10 pips lower than the previous late trading close and 1.98% below the

For its part, the Russian ruble weakened slightly against the US dollar on Monday. Around 07:15 GMT, the ruble was down 0.18% to 93.60 per dollar after trading in a range of 93.328 to 93.640. The ruble fell by 0.2% to 99.81 against the euro and by 0.25% to 12.89