The US dollar fell against some other currencies today as traders remained concerned that the Federal Reserve will not be able to raise interest rates as fast as it has initially planned. The greenback was especially vulnerable against commodity-geared currencies and the Great Britain pound, faring better against safe currencies and the euro.
Previously, prospects for monetary tightening was the main source of the dollar’s strength. Yet with the Fed’s cautious approach to changing its monetary policy, traders feel somewhat disappointed and less interested in the dollar.
The greenback’s weakness was benefiting its rivals. Commodity currencies was especially strong due to the rally of raw materials priced in the dollar.
It is important to remember that this week’s schedule is full of economic data from the United States, meaning that things may yet change for the US currency (though for better or worse is impossible to say).
EUR/USD was little changed at 1.1412 as of 23:31 GMT today after rising to the daily high of 1.1446 and falling to the low of 1.1371. GBP/USD jumped from 1.4113 to 1.4231. USD/JPY traded at 107.91, not far from the opening level.
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