The dollar neared its lowest level in 7 months against other major currencies on Monday, after last week’s data showed the US Federal Reserve may slow the pace of decisions to raise interest rates, while the re- China’s open borders are the highest-risk currency.
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 Reserve Board 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 in December.
The dollar index, which measures the performance of the US dollar against 6 major currencies, fell 0.1% to 103.62 after falling 1.15% on Friday as investors turned to riskier assets .
The British pound was up again today, Monday, and was up 0.55% to 1.2159, after gaining 1.5% on Friday.
The euro rose 0.28% to 1.0674 thanks to a 1.17% increase on Friday. The Japanese yen fell 0.2% to 132.33 against the dollar.
The Australian dollar rose 1.03% to $0.695, the highest level against the US currency since August 30, while the New Zealand dollar rose 0.67% to $0.641, nearing a 3-year high weeks.
