iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Dollar trades near 1-year lows in early trade

18 Jul 2023 , 11:41 AM

In response to last week’s lower-than-expected U.S. inflation report, the dollar swayed close to a more than one-year low against its key peers on Tuesday as investors watched new catalysts to determine whether the greenback still had room to fall.

The U.S. dollar index, which compares the value of the dollar to a basket of six other currencies, slightly decreased to 99.84 in early Asian trading on Monday after falling to its lowest level since April 2022 on Friday.

Last week, the index experienced its worst week of 2023 as a result of data showing that U.S. inflation has further decreased, with consumer prices showing their smallest annual gain in more than two years. This has relieved pressure on the Federal Reserve to keep raising interest rates.

The euro reached a new 17-month high against the dollar of $1.1256, while sterling increased by 0.15% to $1.3094, not far from its previous high of $1.3144, which was also its best level since April 2022.

The Fed is expected to raise rates by 25 basis points at its policy meeting later this month, but rates are expected to start falling as early as December, according to the money markets.

Investors, on the other hand, anticipate that the Bank of England and the European Central Bank will still need to raise interest rates.

The Reserve Bank of Australia’s July policy meeting minutes revealed that the decision to maintain interest rates on hold was made because policy was obviously restrictive, which caused the Australian dollar to give up some of its previous gains in other currencies.

The Australian dollar last moved up 0.07% to $0.6821.

The New Zealand dollar gained 0.1% to $0.6332 although still nursing losses from the prior session.

The Antipodean currencies, which are frequently used as liquid substitutes for the Chinese yuan, fell on Monday as China’s second-quarter GDP figures revealed that the country’s economy was expanding at a sluggish rate due to weak demand both at home and abroad.

For feedback and suggestions, write to us at editorial@iifl.com

List of Countries and Currencies of the World - Check the full list here

Related Tags

  • Dollar
  • Euro
  • FOREX
  • Yen
  • Yuan
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Most Read News

SBI Card Q4 Profit Slips 20%
25 Apr 2025|11:17 PM
HUL Q4 Net Profit Rises to ₹2,493 Crore
25 Apr 2025|10:59 PM
Sensex and Nifty in Red on April 25, 2025
25 Apr 2025|02:08 PM
Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.