The euro strengthened to a one-week high on Monday, taking advantage of the dollar's decline as numerous Federal Reserve officials made it clear the
The euro strengthened to a one-week high on Monday, taking advantage of the dollar’s decline as numerous Federal Reserve officials made it clear they opposed quickening the rate hike schedule.
The late-week remarks caused the dollar to fall from two-decade highs and prompted traders to take on more risk, which boosted international stocks and non-dollar currencies, particularly the euro.
The index for the dollar, which compares its value to six other currencies, is currently 1.8 percent below last week’s 20-year highs and, as of 0800 GMT, was down 0.35 percent at 107.48. The primary element of that index, the euro, increased by 0.5 percent to USD 1.0149 after falling below parity last week for the first time since 2002.
The statements by Fed governor (Christopher) Waller, hammering back on the 100 bps rise, have had the expected effect, according to Derek Halpenny, head of research at MUFG. “With equities markets still in positive territory, risk appetite is back,” he added.
Some predict that China’s central bank may announce long-awaited policy easing on Wednesday. Peiqian Liu, China economist at NatWest Markets, said: “The silver lining is that China does not now face imminent or increased inflationary pressures, which permits the policymakers to keep to their easing stance to sustain the economy.”
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