On Monday, the US dollar remained above a four-month low after a couple of weak US data and Federal Reserve official statements left the markets and investors under question on how the current administration intends to help the US dollar recover and gain momentum.
The US dollar index remained flat at 100.390 against a basket of six other currencies and recorded a low of 98.85 in the previous week plunging further from the recent decline brought about US President Donald Trump’s failure to get the healthcare reform bill approved last month.
The dollar which gained on last week’s month-end buyout has now declined and is awaiting a much
Other bullish bets on the US dollar has also been reduced last week following the consumer spending data led to banks on the Wall Street bringing down their first quarter US economy estimates for the first quarter. Mixed US economic data last Friday also confirmed that the economy is growing at a slower rate than expected and that consumer spending barely rising led by income tax refund delays.
USD Above 100, To Go Down Further
The index is currently down by 0.08% at 100.34 breaking below 99.50 last week and touched near 98.92 the day prior before it touched 100.50 the most recent trading session.
The US dollar also declined into a session’s low after William Dudley, president of the New York Federal Reserve Bank that two more interest rate hikes are not to be rushed given the current performance of the US economy.
Although he stated that two more interest rate hikes ‘seems reasonable’ he also stated that there is no urgency to push through with moving up the rates quickly as
Although the greenback is currently on track, analysts are expecting the currency to drop 3 more percent in the coming quarter and is set to receive weaker forecasts
Against the yen, the US dollar also dropped to 111.26 following the absence Japanese banks and financial firms from the fiscal year-end market although the dollar currently holds an opportunity against the Japanese yen once the Japanese market returns to the market in a week.
The EUR/USD pair rallied to a high of 1.0702 recovering from a session low of 1.0670 as the greenback pared more losses.