USD reversed direction

USD reversed direction from rally last week after finance minister failed to address greenback's recent weakness in weekend G8 meeting; traders had pushed up USD in case G8 took a more aggressive stance on currency policy. Instead, finance ministers focused on rising commodity prices, risks that poses to world economy. With nothing about currencies coming out of G8, traders took profits and USD fell back from its one-month high vs EUR struck Friday. EUR was additionally supported vs USD by European inflation data that made a rate hike by the European Central Bank next month all the more likely.