The dollar traded at a nine-month low against the euro and lost recent gains against the yen amid traders’ assessments of US recession risks and Fed policy.
The US dollar index, which measures the US dollar against a basket of six other major currencies, fell 0.12% to 101.89. The euro rose 0.08% to $1.0880.
Forex traders expect only two more increases in rates by a quarter from the Fed to a maximum of about 5% by June, and by the end of the year, there may be two decreases by a quarter of the point. In turn, the Fed says that it is possible to tighten at 75 basic points.
At the same time, the euro was supported by the mood of representatives of the European Central Bank on the further aggressive tightening of politics.
ECB President Christine Lagarde on Monday said that the Central Bank will continue to increase interest rates.
In other places, the dollar fell by 0.41% to 130.11 yen, rolling back from two sessions of strong growth.
Last week, the dollar fell to 127.215 yen since the traders rely on the fact that the Bank of Japan would begin to complete its stimulation program, but the Bank of Japan left the policy unchanged, giving the dollar some respite.
Despite this, many analysts and traders continue to expect hawkish action from the BOJ this year as policymakers look to extend the life of the yield curve control (YCC) mechanism, which locks short-term rates at -0.1% and maintains a 10-year yield near zero.
At the same time, the pound sterling traded at $1.2391, up 0.12% on the day.
The Australian dollar rose 0.18% to $0.7041, while the New Zealand dollar gained 0.27% to $0.6508.
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