The U.S. dollar extended losses on Monday, as currencies investors bet on slowing rate hikes later this year following U.S. Federal Reserve chairman's dovish remarks last week.
Global foreign exchange market embraced the first day of the week with bumpy trading as fewer interest rate hikes later would lead to more hot money flowing in the market.
This would pare the greenback's comparative edges against other major currencies, especially those with safehaven functions such asthe Swiss franc. The U.S. dollar lost 0.7 percent against the Swiss franc on Monday.
Fed Chairman Jerome Powell said Friday that there is "no preset path" for interest rate hikes and the Fed has been patient and keeping a close eye on the voices of the financial market.
"As always, there is no preset path for policy," Powell said, along with his predecessors Janet Yellen and Ben Bernanke at the American Economic Association's annual meeting in Atlanta on Friday.
"And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves," he noted.
He added that the U.S. central bank would not hesitate to adjust its balance sheet reduction plan if it causes problems in the markets. That means altering its massive bond-purchasing program initially implemented in late 2008 to rescue the collapsing U.S. financial system.
Rising oil prices on Monday also uplift some commodity-related currencies, as both U.S. crude and Brent crude extended gains. The Australian dollar extended gains of nearly 0.4 percent against the greenback.
The dollar index, which measures the greenback against six major peers, fell 0.54 percent at 95.6675 in late trading.
In late New York trading, the euro was up to 1.1478 dollars from 1.1398 dollars in the previous session, and the British pound was up to 1.2769 dollars from 1.2740 U.S. dollars in the previous session. The Australian dollar increased to 0.7142 dollar from 0.7116 dollar.
The U.S. dollar bought 108.60 Japanese yen, higher than 108.52 Japanese yen of the previous session. The U.S. dollar was down to 0.9794 Swiss franc from 0.9864 Swiss franc, and it decreased to 1.3296 Canadian dollars from 1.3394 Canadian dollars. Enditem
Global foreign exchange market embraced the first day of the week with bumpy trading as fewer interest rate hikes later would lead to more hot money flowing in the market.
This would pare the greenback's comparative edges against other major currencies, especially those with safehaven functions such asthe Swiss franc. The U.S. dollar lost 0.7 percent against the Swiss franc on Monday.
Fed Chairman Jerome Powell said Friday that there is "no preset path" for interest rate hikes and the Fed has been patient and keeping a close eye on the voices of the financial market.
"As always, there is no preset path for policy," Powell said, along with his predecessors Janet Yellen and Ben Bernanke at the American Economic Association's annual meeting in Atlanta on Friday.
"And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves," he noted.
He added that the U.S. central bank would not hesitate to adjust its balance sheet reduction plan if it causes problems in the markets. That means altering its massive bond-purchasing program initially implemented in late 2008 to rescue the collapsing U.S. financial system.
Rising oil prices on Monday also uplift some commodity-related currencies, as both U.S. crude and Brent crude extended gains. The Australian dollar extended gains of nearly 0.4 percent against the greenback.
The dollar index, which measures the greenback against six major peers, fell 0.54 percent at 95.6675 in late trading.
In late New York trading, the euro was up to 1.1478 dollars from 1.1398 dollars in the previous session, and the British pound was up to 1.2769 dollars from 1.2740 U.S. dollars in the previous session. The Australian dollar increased to 0.7142 dollar from 0.7116 dollar.
The U.S. dollar bought 108.60 Japanese yen, higher than 108.52 Japanese yen of the previous session. The U.S. dollar was down to 0.9794 Swiss franc from 0.9864 Swiss franc, and it decreased to 1.3296 Canadian dollars from 1.3394 Canadian dollars. Enditem
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