U.S. Dollar Turns In Mixed Performance Against Major Counterparts

RTTNews | 693 days ago
U.S. Dollar Turns In Mixed Performance Against Major Counterparts

(RTTNews) - The U.S. dollar was largely subdued on Monday with traders assessing recent comments from Fed officials and awaiting fresh data for clarity about interest rates.

Markets are awaiting the release of U.S. inflation report for more clarity on the Federal Reserve's rate path.

U.S. reports on personal income and spending, durable goods orders, housing starts and new and existing home sales due this week may also shed more light on the U.S. economic and rate outlook.

European Central Bank (ECB) Governing Council Joachim said Friday that the ECB has probably concluded its hiking cycle, but it's still too early to consider lower borrowing costs. Fellow member Madis Muller also indicated that it's too early to talk about rate cuts in the near term.

The Bank of Japan (BOJ) began a 2-day meeting on Monday amid speculation it could change its forward guidance on interest rates or provide signals on policy change. The BOJ is widely expected to ditch negative interest rates by the end of next year.

The dollar index, which dropped to 102.38 in the Asian session, recovered to around 102.65 in the New York session, but struggled to hold at higher levels. It was last seen at 103.53, down marginally from the previous close.

Against the Euro, the dollar weakened to 1.0924 from 1.0892, and against Pound Sterling, it firmed to 1.2648, gaining nearly 0.3%.

The dollar gained against the Japanese currency, firming to 142.86 yen from 142.16 yen. Against the Aussie, the dollar was flat at 0.6705, moving in a very tight band. Against Swiss franc, the dollar weakened to CHF 0.8672, while against the Loonie, it firmed to fetch C$ 1.3402 a unit, compared to C$ 1.3381 a unit on Friday.

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