The U.S. dollar rose in late trading on Monday as investors awaited Federal Reserve Chief Jerome Powell’s upcoming speech on Wednesday to gain more insights into the December Federal Reserve meeting.
The dollar index, which measures the greenback against six major peers, increased by 0.19 percent to 105.2191 in late trading.
Fed Governor Lisa Cook expressed hope that the central bank’s current target interest rate would be sufficient to bring inflation back to the 2 percent target. She stated, “We hope that this will be restrictive enough such that we can return to our 2 percent target over time,” during a speech at Duke University. Cook also emphasized the central bank’s commitment to ensuring the inflation target is achieved.
After reaching multi-week lows last week, U.S. Treasury bond yields saw a recovery, which helped halt the decline of the U.S. dollar on Monday. The 2-year bond rate increased to 4.90 percent, while the 5-year and 10-year yields rose to 4.60 percent and 4.65 percent, respectively.
In the eurozone, the S&P Global/HCOB services purchasing managers’ index (PMI) remained unchanged at 47.8 last month, aligning with analysts’ predictions. This figure marked a decrease from September’s 48.7 and represented the lowest level since February 2021.
During late New York trading, the euro declined to 1.0723 U.S. dollars compared to 1.0736 U.S. dollars in the previous session. Similarly, the British pound dropped from 1.2380 U.S. dollars to 1.2351 U.S. dollars.
The U.S. dollar’s exchange rate against the Japanese yen increased from 149.3240 Japanese yen in the previous session to 149.9690 Japanese yen. Additionally, the U.S. dollar improved against the Swiss franc, rising to 0.8987 Swiss francs from 0.8981 Swiss francs. It also strengthened against the Canadian dollar, climbing to 1.3691 Canadian dollars from 1.3659 Canadian dollars. Furthermore, the U.S. dollar appreciated against the Swedish krona, reaching 10.9080 Swedish krona from 10.8744 Swedish krona.
