HomeFinancial MarketsDollar Retreats From Six-Week Peak as Investors Await Fed's Next Move

Dollar Retreats From Six-Week Peak as Investors Await Fed’s Next Move

The U.S. dollar edged lower on Monday but remained close to the six-week high recorded by the greenback on Friday. The U.S. Dollar index, which measures the dollar against a basket of major currencies, retreated by 0.14% to 103.83. Despite the drop, the index remains 1.8% up for the month. It hit a six-week high of 104.67 on Friday.

Chris Turner, global head of markets at ING observed the dollar’s recent movements, explaining, “The dollar has had quite a big move this month on the back of rates repricing and the question is how much further that’s going to run.”

As the labor market remains tight and prices continue to rise, the Federal Reserve seems intent on continuing its interest rate hikes in the interest of further suppressing inflation. Both consumer and producer prices are on the rise, with retail sales increasing as well despite the hike.

Following the example of the U.S. Federal Reserve, two European Central Bank (ECB) policymakers indicated that interest rates in the eurozone are also set to continue rising.

Global Central Bankers Convene to Discuss Final Interest Rate Decisions of 2023

Central bankers from half of the Group of 10 territories with the most-traded currencies are set to convene to determine their final interest rate...

Inflation Expectations Sink to Lowest Level in Two Years

The latest consumer sentiment survey from the University of Michigan showed that U.S. consumers are expecting inflation to be 3.1% in a year; a...

Stocks Hit Six-Week Winning Streak Following Strong Jobs Report

Stocks closed the first week of trading in December on a win, thereby securing their sixth consecutive winning week. This comes after the Bureau...