The dollar weakened against its main rivals Monday as analysts say a selloff in U.S. stocks has all but quashed any chance Federal Reserve policy makers will lift interest-rates next month.
The ICE U.S. Dollar index DXY, +0.44% a measure of the dollar’s strength against a basket of six currencies, was down 1.7% to 93.3670.
The dollar has been weakening against the currencies of major industrialized nations since Wednesday, when minutes from the last Fed meeting showed that several expressed doubt that inflation was rising fast enough to satisfy the conditions for a rate increase. The Fed next meets in mid-September.
But the buck’s performance on Monday wasn’t entirely negative. It posted large gains against emerging-markets currencies and the so-called commodity dollars — the Canadian CADUSD, +0.2717% Australian AUDUSD, +0.9641% and New Zealand dollars NZDUSD, +0.7717% — as prices for crude oil, copper and other industrial commodities continued to fall. Many emerging-markets economies are dependent on commodity exports, and are sensitive to moves in those assets.
The euro EURUSD, -0.7143% broke above $1.17 for the first time since mid-January. It recently traded at $1.1575, compared with $1.1388 late Friday in New York.
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The ICE U.S. Dollar index DXY, +0.44% a measure of the dollar’s strength against a basket of six currencies, was down 1.7% to 93.3670.
The dollar has been weakening against the currencies of major industrialized nations since Wednesday, when minutes from the last Fed meeting showed that several expressed doubt that inflation was rising fast enough to satisfy the conditions for a rate increase. The Fed next meets in mid-September.
But the buck’s performance on Monday wasn’t entirely negative. It posted large gains against emerging-markets currencies and the so-called commodity dollars — the Canadian CADUSD, +0.2717% Australian AUDUSD, +0.9641% and New Zealand dollars NZDUSD, +0.7717% — as prices for crude oil, copper and other industrial commodities continued to fall. Many emerging-markets economies are dependent on commodity exports, and are sensitive to moves in those assets.
The euro EURUSD, -0.7143% broke above $1.17 for the first time since mid-January. It recently traded at $1.1575, compared with $1.1388 late Friday in New York.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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