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Dollar recovers but faces monthly loss
The US dollar recovered on Friday but is heading for a monthly loss of around 1% amid weaker-than-expected inflation data and unclear signals from the Federal Reserve regarding future interest rate policies. Meanwhile, the euro rose by 0.8% during July, supported by rising inflation in the Eurozone and expectations of a rate hike in September. The Japanese yen recorded its best monthly performance since October, gaining 1.6%, as government support and prospects of later monetary policy normalization continued to bolster it.
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