Today, Monday, the dollar fell to its lowest level in seven months against the euro, which rose 0.95% to 1.0745, and the pound sterling increased 0.72% to 1.218 against the dollar, and the Swiss franc increased 1.1% to 0.9174 dollars.
Sharjah 24 – Archyde.com:
The dollar fell today, Monday, to its lowest level in seven months against the euro, as dealers bet that recent economic data will prompt the US Federal Reserve to slow the pace of interest rate hikes, while the reopening of the Chinese borders boosted the currencies that have been released. involve higher risks.
The euro rose 0.95% to 1.0745 against the dollar by 1730 GMT, its highest level against the US currency since June 9, after rising 1.17% on Friday.
The British pound increased 0.72% to 1.218 against the dollar, after rising 1.5% on Friday, and the Swiss franc increased 1.1% to 0.9174 dollars, its highest level since early March.
The dollar’s downward trend, which recorded its largest quarterly losses in 12 years, continued in the last three months of 2022, supported by investors’ belief that the Reserve Board will not raise interest rates by more than 5% compared to their current levels between 4.25% and 4.50% with the decline in inflation and growth.
The monthly jobs report released on Friday showed an increase in the number of non-farm payrolls and a slowdown in wage growth, which is positive news for the US central bank.
There were other signs of a slowing economy, with service industry activity in the US contracting for the first time in more than two-and-a-half years in December.
The dollar index, which measures the performance of the US dollar against six major currencies, fell to its lowest level in seven months by 0.2% to 103.54 after falling 1.15% on Friday as investors turned to riskier assets.
Elsewhere, China continued to relax many of its strict rules on movement and anti-Covid policy and reopened its borders.
Optimism about the speed of the economy’s recovery led the offshore yuan to a five-month high against the dollar on Monday.
The Australian dollar rose 1.05% to $0.69475, its highest level against the US currency since August 30, while the New Zealand dollar rose 0.7% to $0.6394.