Dollar at one-month trough as traders see global rates rising
The dollar slipped on Monday, as traders weighed the prospect of inflation hastening the pace of rate hikes outside the United States, with a wary eye on commodity prices, U.S. growth data and central bank meetings ahead in Europe, Japan and Canada.
The dip pulled the dollar index to a one-month low and extends softness after Federal Reserve Chair Jerome Powell said on Friday it not yet time to begin raising interest rates.
Powell's remarks came as investors have priced in Fed rate hikes starting in the second half of next year and yet have begun to trim long dollar positions in anticipation that other central banks could get moving even sooner.
The greenback fell about 0.2% against the Australian and New Zealand dollars and about 0.1% to $1.1659 per euro . The dollar index edged down as far as 0.2% to 93.483. The yen, which leapt on Friday, eased slightly to 113.63 per dollar.
Sterling was up 0.2% at $1.3781, though it and the Aussie and kiwi are still below highs scaled last week and analysts have begun to think they are losing momentum.
The Aussie was last at $0.7482 after rising above $0.75 for the first time since July last week and the kiwi bought $0.7161 after trading as high as $0.7219 last week.
Reference: Reuters
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