With February drawing to a close, after the dollar rose nearly 3% for the month on better-than-expected US economic data, investors are consolidating their recent positions, said Joe Manimbo, a market analyst at Convera in Washington. .
“It’s just investors taking some chips off the table,” said. “We’ve had a ton of data so far, and it’s been hotter than expected and that’s been the fuel for the dollar.”
The market is awaiting this month’s US unemployment data on March 10 and the consumer price index on March 14, which will influence the Federal Reserve’s interest rate policy. and the central bank’s efforts to curb inflation.
Traders now expect the Fed to raise rates to around 5.4% at its September meeting, according to FEDWATCH rate futures market prices. At the beginning of February, they expected a maximum of only 4.9%.
The dollar index, which measures the price of the greenback against six currencies, fell 0.513%, after reaching its highest level since January 6.
The euro rose on Monday to $1.0607, while the dollar strengthened 0.2% against the yen to 136.20 yen.
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