The U.S. dollar hovered near a two-week low on Monday as investors scaled back expectations that the Federal Reserve will raise interest rates again this year, while the Japanese yen remained close to its weakest level in nearly four decades, keeping markets on alert for a possible intervention by Tokyo.
The euro traded at $1.1435, close to its highest level in two weeks, while sterling stood at $1.3351 in the latest trading.
The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, was little changed at 100.9 in early trading.
Meanwhile, the Japanese yen held steady at 161.57 per dollar, remaining near last week’s 38-year low of 162.84, its weakest level since 1986. Traders continue to monitor the possibility of official intervention after a sudden surge in yen buying briefly lifted the currency on Thursday.
The U.S. dollar recorded its largest weekly decline since April last week after U.S. employment data showed a sharp slowdown in job growth during June, easing market expectations that the Federal Reserve would tighten monetary policy further this year.
Analysts at OCBC Bank said the broader outlook for the U.S. dollar remains positive, maintaining their forecast that the currency will post a moderate gain of 2% to 3% during the second half of 2026.
Reuters
