2023-12-29 07:57:57
Singapore, December 29 (QNA) – The dollar began today on its way to ending the year 2023 with a loss, dissipating its gains over two consecutive years, amid expectations that the Federal Reserve (the US central bank) may begin reducing interest rates next year.
The dollar remained broadly declining on the last trading day of the year, amid a state of calm due to the holidays.
Since the US Federal Reserve launched its course to tighten monetary policy in early 2022, expectations related to the amount of need to raise interest have been a primary driver for the dollar, but with the frequency of economic data indicating a continued slowdown in inflation in the United States, investors’ focus has shifted to the date when the Central Bank may begin reducing rates. Benefit.
The dollar fell once morest a basket of currencies by 0.02 percent to 101.18, hovering near its lowest level in five months at 100.61, which it recorded in the previous session.
The dollar index is heading to record a loss of more than two percent during this month and regarding 2.2 percent for the entire year.
The dollar’s weakness provided breathing space for other currencies, including the euro, which recorded $1.1076 in recent trading and is hovering near the highest level in five months, and is on its way to rise by more than three percent this year.
In turn, the British pound is on its way to achieving annual gains of five percent, which is its best performance since 2017, as it rose in the latest trading by 0.04 percent to $1.2740.
As for the risk-sensitive Australian and New Zealand dollars, they are on their way to achieving gains of 3.5 and 3 percent during the month, respectively, although they did not witness significant change during the year.
In Asia, the yen is heading for a decline of more than seven percent in 2023, continuing its decline for the third year under pressure from the ultra-loose monetary policy adopted by the Bank of Japan. The yen settled in the latest trading at 141.45 to the dollar.
In China, the yuan on the mainland is heading to record an annual loss of approximately three percent, under pressure from the faltering recovery of the second largest economy in the world due to the repercussions of the Corona virus. In the latest transactions, the yuan reached 7.0925 to the dollar, while its price abroad reached 7.0898 to the dollar.
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