BNR – A weakened dollar recovered last Monday after suffering the most significant weekly fall of the year 2023. This happens as people awaited economic statistics and other changes in policies prior to selling the currency even more down.
The euro, however, rose 2.4 per cent in the past week to a record high of 16 months. It remained solid just under the peak of $1.1223. The yen also rose 2.4 per cent in the same week and remained at 138.56 for $1.
China’s development information achieved slightly higher than the low projections on Monday. However, it was without invoking a great reaction from the market, as traders had priced a slow market. They were holding off to find out whether the government intervenes to encourage expenditure.
Both the Australian and New Zealand dollars fell a little bit. The Australian dollar’s last was at $0.6821, which is less than the peak of last week at $0.6895. As for the New Zealand dollar, it decreased by 0.2 per cent at $0.6355 after reaching a record high of five months at $0.6412.
“The data suggests that China’s post-COVID boom is clearly over,” said Commonwealth Bank of Australia strategist Carol Kong. “[However,] markets already had low expectations, and reaction from here is fairly limited.”
The dollar’s decrease in the past week occurred as traders started buying yen. However, it rose high after soft US inflation data encouraged wagers that the United States’ interest rates will hike.
Traders Await Interest Rate Hikes from Fed
Investors are projecting interest rate increases from the Federal Reserve and European Central Bank next week. The market price, however, suggests the increases will probably cease, while another increase in Europe may be underway.
The US dollar index fell 2.2 per cent in the past week and remained solid at 99.936 in the Asia session. The fall is the biggest 1-week decrease since November.
The Swedish and Norwegian crowns made profits of over 5 per cent on the US dollar in the past week.