The dollar commenced the week on a stable footing, with market participants eagerly awaiting a series of speeches from Federal Reserve officials, potentially offering further clarity on the U.S. interest rate trajectory. This follows the Fed’s recent decision to resume its easing measures.
Last week’s currency market exhibited significant volatility, influenced by interest rate decisions from the Fed, the Bank of England, and the Bank of Japan. Despite a hawkish tone from the BOJ suggesting a possible rate hike, the yen slid by 0.16% to 148.22 per dollar.
Sterling dropped to a two-week low of $1.3458, hindered by rising UK public borrowing. With the Fed speeches in focus, particularly those of Chair Jerome Powell and Governor Stephen Miran, currency markets anticipate possible shifts driven by discussions on the Fed’s independence and economic outlook.
(With inputs from agencies.)
