The U.S. dollar edged slightly higher on Monday, thereby pulling clear of six-month lows experienced against a basket of major world currencies.
While the euro faded against the dollar by about a third of a percent to $1.0680, the dollar fell slightly against the yen to 130.94. This is the dollar’s lowest level against the yen since August last year.
According to the dollar index, the greenback was up 0.16% at 103.65 when traded against a basket of other major global currencies. This marks a 0.16% rise from the dollar’s six-month low of around 103.38 last week.
Ulrich Leuchtmann, head of forex research at Commerzbank believes that decisions of the U.S. Federal Reserve will continue to serve as one of the main drivers for the strength of the dollar.
“There is an attempt by the dollar index to pull higher today but we do see that it is losing a good part of the strength it gained last year,” Leuchtmann commented. “After the last Fed meeting, the market was not convinced that the Fed won’t cut rates later in 2023. It’s going to be an interesting year.”