Dollar Slips To Over Two-Month Low

London: 20 November 2023 (TraderMade): The US dollar dipped to its lowest point in over two months on Monday, continuing its downward trend from the previous week. Market participants are increasingly convinced that US interest rates have peaked and are now closely monitoring when the Federal Reserve might initiate rate cuts.

USD pairs: latest updates

EURUSD

In response to the weakening dollar, the Euro rose to a more than two-month high of $1.0936,anticipating flash PMI readings in the eurozone later this week.

GBPUSD

Sterling also gained 0.16% to $1.24758.

USDCNY

In contrast, the Chinese yuan reached three-month highs in both onshore and offshore markets, supported by China's central bank. At about 7:13 AM GMT today, USDCNY declined by 0.43% to 7.1802.

USDJPY

The dollar's decline relieved the Japanese yen, which strengthened to sit above 150 per dollar. On Monday, the pair was at 149.176.

AUDUSD

Similarly, the Australian dollar climbed to a three-month high against the weakening dollar. The risk-sensitive Australian dollar edged approximately 0.5% higher to $0.6563, reaching its peak since August.

NZDUSD

The New Zealand dollar increased by 0.59% to $0.60256, compared to $0.599 (Friday, 17 November Close).

USDX

The dollar index in Asian trade reached 103.64, marking its lowest level since 1 September and extending its nearly 2% decline from the previous week- the most significant weekly drop since July.

US economic indicators matter

After a series of weaker-than-expected US economic indicators, especially a below-estimate inflation reading last week, markets have discounted the likelihood of further Fed rate hikes. Attention is now shifting to when the first rate cuts might occur.

This week, the release of the Fed's latest meeting minutes is awaited, providing insight into policymakers' thinking as they maintained rates for a second consecutive month.

Stay updated with the Live Forex Rates for wide-ranging currency pairs to make informed decisions.