The dollar rose slightly on Monday as traders looked ahead to a series of speeches from Federal Reserve officials this week that could provide further clues on the US rate outlook, following the central bank’s resumption of its easing cycle last week.
The greenback hovered near levels seen before last week’s Fed decision. Analysts said current pricing reflects the central bank’s focus on the labour market as the key driver of policy.
Last week’s US economic data showed a decline in new applications for unemployment benefits, reversing the prior week’s increase. “The lack of significant data until Friday’s core Personal Consumption Expenditures (PCE) inflation release leaves investors reassessing Fed rate cuts and the path ahead”, said Bob Savage, head of markets macro strategy at BNY Mellon.
Over 18 Fed events are planned this week, including speeches by Chair Jerome Powell, Cleveland Fed’s Beth Hammack and St Louis Fed’s Alberto Musalem, noted for their hawkish views. New Fed Governor Stephen Miran defended his dissent for a steeper 50-basis-point rate cut, promising a detailed argument later on Monday. Analysts suggested Miran’s move aimed to reinforce Fed unity and institutional independence.
US President Donald Trump criticised the Fed, urging more aggressive rate cuts. The dollar was up 0.05% at 97.66 against a basket of currencies, while the euro was flat at $1.1748. The yen slipped 0.10% to 148.06 per dollar. Sterling fell to a two-week low of $1.3453, pressured by UK fiscal concerns. The Australian dollar dropped to $0.6575, its lowest since September 8, while the yuan strengthened slightly to 7.1136 per dollar, supported by easing Sino-US trade tensions and unchanged Chinese benchmark lending rates. — Reuters
Oman Observer is now on the WhatsApp channel. Click here
