The dollar neared its lowest level in 7 months against other major currencies on Monday, after last week’s data showed the Federal Reserve (the central bank of the United States) may be slowing the pace of decisions to raise interest rates, while the reopening of the Chinese borders have strengthened risky currencies.
The yuan in foreign transactions approached a 5-month high against the dollar, and the Australian and New Zealand dollars rose sharply.
The dollar posted its largest quarterly loss in 12 years in the final three months of 2022, supported by investors’ belief that the “Central Bank of the United States” will not raise interest rates more than 5% from their current levels between 4.25 and 4.50% with declining inflation and growth.
The monthly jobs report released on Friday showed an increase in the number of nonfarm payrolls and a slowdown in wage growth, which is good news for the US central bank.
There were other signs of an economic slowdown, with US service sector activity contracting for the first time in more than two-and-a-half years last December.
The dollar index – which measures the performance of the US dollar against 6 major currencies – fell 0.1% to 103.62 points, after last Friday’s 1.15% drop, with investors are aimed at riskier activities.
For other major currencies:
- The British pound rose 0.55% to 1.2159, after gaining 1.5% last Friday.
- The euro has gone up 0.28% to 1.0674 on Friday’s 1.17% gain.
- fallen off The Japanese yen rose 0.2% to $132.33.
- The Australian dollar rose 1.03% to $0.695.
- The New Zealand dollar rose 0.67% to $0.641.
