He landed Dollar -Today, Monday- to its lowest levels in two months, continuing a series of losses that has continued since last week, in light of traders confirming their belief that US interest rates have reached their peak and turning their attention to a timing in which the Council might begin… Federal Reserve (The US Central Bank) reduced interest rates. Meanwhile, gold rose slightly in early trading in global markets.
The Chinese yuan reached its highest levels in 3 months in local and international markets, supported by the Chinese Central Bank, which contributed to raising the Australian and New Zealand dollars, which are often used as alternatives to the yuan in liquidity.
The dollar index fell in Asian transactions to 103.53, its lowest level since September 1, extending its continuous losses since last week, which are approaching 2%. This is the worst weekly decline since last July.
Against the weakness of the US dollar, the euro recorded $1.09365, reaching its highest levels since August, while the Japanese yen settled at 148.68 against the dollar, its highest levels in a month.
The markets abandoned their belief in the risk of the US Central Bank raising interest rates again after the release of a series of weaker than expected economic indicators in the United States last week, specifically after the inflation reading was released at a level lower than estimates.
The rise of sterling
The British pound rose 0.14% to $1.2480, approaching its highest level in two months, while the euro was trading at $1.09185 in the latest trading, before reading the Eurozone Purchasing Managers’ Index, which is scheduled to be released this week.
The Japanese yen remained high and did not reach 150 against the dollar, as it rose 0.3% to trade at 149.17.
The Chinese yuan rose in local markets by 0.5% to its highest level in more than 3 months at 7.1700 against the dollar, while the yuan in international markets received a similar boost, jumping almost 0.6% to its highest level in 3 months at 7.1703 against the dollar.
The Australian dollar rose 0.5% to $0.6546, and had recorded its highest level in 3 months at $0.6563 earlier in the session, while the New Zealand dollar rose 0.54% to $0.6025.
Gold goes up
As for gold, its prices rose slightly on Monday as the dollar continued its losses. Gold in spot transactions increased 0.1% to 1981.80 per ounce in early trading today after rising 2.2% last week.
US gold futures settled at $1,984.20 an ounce.
In light of data indicating a slowdown in the labor market in the United States and consumer price inflation data that came lower than expected last week, hopes have been strengthened that the US Central Bank will begin easing monetary policy earlier than expected.
Lower interest rates put downward pressure on the dollar and bond yields, enhancing the attractiveness of the yellow metal, which does not generate a return.
Investors are currently awaiting the release of the minutes of the US Federal Reserve’s latest meeting later this week, searching for indications about the future path of interest rates.
As for other precious metals, silver stabilized in spot transactions at $23.73 per ounce, while platinum rose 0.5% to $903.02, and palladium also increased 0.3% to $1,056.33 per ounce.