The dollar stabilized on Monday ahead of the release of an important US inflation data report later this week, which provides further indicators of the monetary policy expectations at the Federal Reserve (the US central bank), after the markets started the week with a hesitant start as bets on interest rate cuts were reduced.
Transactions were weak in Asia due to a public holiday in the Japanese stock exchange.
The dollar rose by 0.05 percent against the yen to 144.67, continuing its gains from last week when it jumped by 2.6 percent against the Japanese currency in its best weekly performance since June 2022.
The New Zealand dollar increased by 0.1% to $0.6248 after falling by 1.2% last week. The dollar index remained stable at 102.38.
The rise in the dollar was supported by the recovery of the yield on US Treasury bonds, as traders revised their expectations for the pace and magnitude of US interest rate cuts this year.
However, reading the expected announcement of US inflation on Thursday may change these opinions again, after data on Friday revealed that employers in the United States hired more workers than expected in December, while wages increased strongly, indicating a labor market that continues to exhibit strength and flexibility.
As for the rest of the currencies, the British pound increased by 0.02 percent to 1.2721 dollars, while the euro rose by 0.08 percent to 1.0948 dollars after declining by 0.9 percent the previous week.
The Australian dollar rose by 0.1 percent to $0.6721, recovering some of the losses it incurred last week when it dropped by 1.5 percent. (Reuters)
