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Dollar Extends Weakness Against Other Major Currencies

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Dollar Extends Weakness Against Other Major Currencies

The U.S. dollar traded weak against most of its peers on Monday with the focus shifting to upcoming policy meetings of the Federal Reserve and European Central Bank.

A drop in U.S. Treasury yields weighed on dollar.

Traders also reacted to U.S. Treasury Secretary Janet Yellen’s comments that a “slightly higher” interest rate environment would be a positive for the economy.

Data on U.S. inflation, due later this week, is likely to provide some indications about the central bank’s policy outlook.

The dollar index dropped to 89.91 around noon, losing more than 25%. It was last seen at 89.98.

Against the Euro, the dollar weakened to $1.2193, giving up about 0.21%. Euro area investor confidence rose for the fourth straight month in June to its highest level in over three years as financial experts assessed the current economic situation more favorably, survey data from the behavioral research institute Sentix showed.

The Sentix investor confidence index for Eurozone climbed to 28.1 from 21.0 in May. Economists had expected a score of 26.

The latest reading was the highest since February 2018, the think tank said.

The Pound Sterling strengthened to $1.4180, gaining 0.17%.

The Yen strengthened to 109.26, up 0.26% from Friday’s close. The Aussie was stronger with the AUD-USD pair quoting at 0.7757, about 0.23% up from the previous close.

The Swiss franc strengthened to CHF 0.8975 a dollar, gaining from CHF 0.8994, while the Loonie gained marginally at C$ 1.2080, recovering from C$ 1.2107 a dollar.

The material has been provided by InstaForex Company – www.instaforex.com