NEW YORK, July 10 (Xinhua) — The decline of the U.S. dollar gained momentum on Monday as investors eagerly awaited a crucial U.S. inflation report. This led to a 0.30 percent drop in the dollar index, which measures the performance of the greenback against six major currencies, to 101.9780 during late trading.
Market analysts are closely monitoring the forthcoming U.S. inflation prints this week, particularly the core consumer price index (CPI) which has remained persistently high. It is worth noting that the market has already factored in a potential increase to the benchmark Fed funds rate at the Federal Open Market Committee (FOMC) meeting in July.
Several U.S. central bank officials expressed their views on Monday, suggesting that an end to the rate hiking cycle is imminent. Fed Vice Chair for Supervision Michael Barr stated, “We still have a bit of work to do…I think we’re close.”
On Monday, the yield of U.S. two-year Treasury notes experienced a significant dip of over 10 basis points, reaching approximately 4.85 percent. This drop is a reflection of the evolving market sentiment.
In other news, the Commerce Department released data on Monday indicating that U.S. wholesale inventories remained flat in May due to businesses adopting a cautious approach in restocking amid a volatile demand environment.
The Bank of France reported that the French economy is projected to grow by 0.1 percent in the second quarter of the year, following a 0.2 percent expansion in the previous quarter.
During late New York trading, the euro strengthened to 1.0999 dollars from 1.0967 dollars in the previous session, while the British pound rose to 1.2856 dollars from 1.2838 U.S. dollars.
The U.S. dollar weakened against the Japanese yen, falling to 141.3010 yen compared to the previous session’s 142.1470 yen, marking a three-week low. Additionally, the U.S. dollar declined against the Swiss franc to 0.8854 francs from 0.8887 francs. However, it saw a slight increase against the Canadian dollar, reaching 1.3279 dollars from 1.3272 dollars. Lastly, the U.S. dollar dropped against the Swedish Krona to 10.7647 krona from 10.8309 krona.
Credit: The Star : News Feed
