The U.S. dollar is falling moderately against the euro and the yen on Monday morning, while strengthening weakly against the pound sterling.
The ICE-calculated index, which shows the U.S. dollar’s dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), declined 0.1% during the morning session.
The euro/dollar pair was trading at $1.0646 as of 8:20 a.m. Q, versus $1.0635 at the close of last Friday’s session, with the euro adding about 0.1%.
The pound sterling is down 0.1% and is trading at $1.2031 versus $1.2043 at the close of last session.
The dollar-yen exchange rate is down 0.1% and trades at 135.76 yen.
Foreign exchange market participants are assessing the statements of the Federal Reserve (Fed) representatives, trying to predict the future trajectory of interest rates.
For example, Mary Daley, head of the Federal Reserve Bank of San Francisco, said last weekend that the Fed rate could stay high for a long time because of sustained inflation.
“To put a period of high inflation behind us, we will probably need more monetary tightening to persist for longer,” she said during a speech at Princeton University.
The Fed’s next meeting is March 21-22.
Meanwhile, the exchange rate of the yuan traded in mainland China is 6.9102/$1, compared with 6.9074/$1 at the close of the previous session.
As reported, the Chinese government set the target growth rate for the country’s economy this year at about 5%. Meanwhile, many economists expected the target to be more ambitious.
Analysts at Swiss bank UBS raised their forecast for Chinese economic growth in 2023 to 5.4 percent from the previously expected 4.9 percent. The growth estimate for 2024 was raised to 5.2% from 4.8%.
EURO, pound, U.S. dollar, yen
