The US dollar which slid after the announcement of the Federal Reserve’s interest rate hike recorded a six-week decline on Monday after it extended a losing streak for the fourth session in Asian trading.
The greenback inched 0.1% lower in the dollar index against a basket of global currencies following the 0.9% decline last week which was recorded to be the biggest decline since January. The US dollar remains to be the focus of the markets after the highly anticipated rate increase.
USD VS Other Majors
The Australian dollar rose 0.2% higher at $0.7719 against the US dollar last week which is seen to be the highest level since last November.
The Japanese yen was also up 0.2% against the dollar despite being close to a local holiday and is headed towards a fifth consecutive session of gains.
As the greenback went lower, Gold prices recovered further by 0.4% at $1,234.31 per ounce in Asia although crude prices remained under pressure with the brent crude trading 0.6% lower at $51.46 per barrel while the West Texas Intermediate was down by 0.8% at $48.39.
As the Federal reserve’s recent announcement start to weigh in and take effect upon different markets, the dollar continued to post losses as the fed stopped forecasting a faster pace in the monetary policy implementation or tightening that might take place in the next two years. Analysts have also seen the decision to weigh down the currency more than other markets in a much longer term.
The sterling, on the other hand, plummeted from a three-week high against the US dollar after British Prime Minister Theresa May announced that she would start talks regarding the official exit of Britain from the European Union on March 29 which would result in around two years worth of negotiations.
The British pound which has been trading higher against the dollar in the past session posted losses to as low as $1.2336 on the news leading the currency to trade 0.45% lower the next trading session.
According to analysts, the US dollar is set to slide further with the weak outlook on upcoming housing data this week.
Gold Rises On US Dollar Slump
As the US dollar weakened, Gold prices hit a two and a half week high to $1,235.50 per ounce up by $5.30 after the Federal Reserve’s announcement to officially raise interest rates.
Analysts have noted that the rally in gold prices started prior to the end of the FOMC meeting and the weak US dollar supporting previous metals to rise and recover from the $1200 per ounce dip last month.
Last Friday, the yellow metal recorded its highest weekly surge since last February after the Fed’s dovish stand regarding interest rates that sent the US dollar low.