Dollar stabilizes but near two-week highs against euro

Dollar stabilizes but near two-week highs against euro
Dollar stabilizes but near two-week highs against euro

The dollar settled during trading on Monday after rising to a two-week high against the euro as bets on adopting a sharp monetary easing path in the United States fell, with economic data awaiting this week.

The dollar rose to its highest since Aug. 21 against the yen, supported by long-term U.S. Treasury yields rising to their highest since mid-August after data showing there was little decline in inflation, reducing the likelihood that the Fed will cut interest rates by 50 basis points on Sept. 18.

In terms of Fed’s monetary policy, expectations of 33 percent indicate that the central bank will cut interest rates by 50 basis points in September, versus a 67 percent probability of cutting it by 25 points, compared to a forecast a week ago that favored the first possibility of 36 percent.

The dollar rose 0.27% to 146.60 yen before falling to 146.04 yen in morning trading by 0510 GMT.

The dollar index against six major currencies rose to 101.79 points in early trading in Asia, a level not seen since Aug. 20.

The euro fell to $1.1042, its lowest level since August 19, before trading at $1.1046.

Analysts said a public holiday in the United States on Monday weighed on the dollar’s performance, but the next few days will see a series of economic data, including nonfarm payrolls on Friday.

U.S. Treasuries will not trade on Monday to coincide with the public holiday, but the yield on the 10-year bond came in at 3.9110% after a rise of 4.4 basis points on Friday.

Sterling settled at $1.31255, near Friday’s low of $1.31095, the weakest since Aug. 23.

Wall Street is witnessing a public holiday on Monday, as US stock markets closed their doors in celebration of Labor Day, and will return to activity on Tuesday.

In terms of recent trading, the dollar index settled by 16:41 GMT at 101.6 points, and recorded a high of 101.8 points and a low of 101.5 points.

Read also :The Egyptian pound continues to regain strength against the dollar. The stock market is witnessing a collective decline

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