Investors are awaiting an important meeting between US President Joe Biden and House Speaker Kevin McCarthy on Monday to discuss raising the debt ceiling.
The dollar regained its strength during the past two weeks, after stronger-than-expected economic reports, and statements by US central officials regarding tightening monetary policy, which indicated the possibility of continuing to raise interest rates.
“The dollar has risen over the past two weeks, supported by the increase in US interest rates,” said Mark Chandler, senior market analyst at Bannockburn Global Forex in New York.
But the comments of the Federal Reserve Chairman, Jerome Powell, made on Friday, led to the decline of the dollar from its highest levels after he said that tightening credit conditions may lead to a limitation in raising interest rates.
The dollar got a small boost after St. Louis Federal Reserve Chairman James Bullard said Monday that the bank may still need to raise interest rates another half percentage point this year.
currency movements
– The dollar rose against the Japanese yen in the latest trading, 0.36 percent, to 138.43 yen, which is slightly below its highest level in six months at 138.75 yen, which it reached Thursday.
The euro rose 0.04 percent to $1.0810, after hitting a more than seven-week low of $1.0760 on Friday.
– The dollar index, which measures the performance of the US currency against six major currencies, rose 0.19 percent at 103.22 points, to remain close to its highest level recorded last week at 103.63 points.
– The British pound fell 0.14 percent to $1.2428, after hitting a three-week low of $1.2392 on Thursday.
– The Australian dollar fell 0.12 percent to $0.6644.
– The New Zealand dollar rose 0.06% to $0.6280, as investors bet the Reserve Bank of New Zealand would raise interest rates by half a percentage point on Wednesday.
– The Chinese yuan fell to 7.0473 per dollar in foreign trade, and is heading towards its lowest level in six months, which it recorded on Friday at 7.0750 dollars.
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