The US dollar retreated slightly from its 10-month highs on Monday during a volatile start to a week where investors are bracing for a series of central bank meetings, amid the US-Israeli war on Iran.
اضافة اعلان
At least eight central banks, including the Federal Reserve, the European Central Bank (ECB), the Bank of England, and the Bank of Japan, are meeting this week to determine interest rates. These are their first monetary policy meetings since the onset of the Middle East conflict.
Attention will center on policymakers' assessments of how rising oil prices will impact inflation and growth. Carol Kong, a currency strategist at Commonwealth Bank of Australia, noted: "The war... poses downside risks to economic growth and upside risks to inflation. The central banks' responses will largely depend on whether inflation is above, at, or below target levels."
Ahead of these meetings, the dollar surrendered some of its strong gains from last week. This allowed the Euro to rebound from its seven-and-a-half-month lows, trading up 0.2% at $1.1440. The British Pound rose 0.23% to $1.3253, remaining near its recent lows after a 1.5% weekly decline.
The Dollar Index (DXY) edged down to 100.29, though it remains close to its 10-month peak following a 1.5% surge last week.
Geopolitical Developments
Over the weekend, US President Donald Trump called on allies to help secure the Strait of Hormuz, stating that his administration is in talks with seven countries. He warned in a Financial Times interview that NATO faces a "very bad" future if allies do not cooperate in reopening the strait.
In a move that could offer some relief, The Wall Street Journal reported that the Trump administration plans to announce a coalition this week to escort ships through the strait. However, markets remain in turmoil, and oil prices continue to rise amid intense geopolitical tension and uncertainty as the war enters its third week.
Other Currencies
Australian Dollar: Rose 0.43% to $0.7010, bolstered by expectations of RBA monetary tightening.
Japanese Yen: Stabilized at 159.37 per dollar, under pressure due to Japan’s energy reliance on the Middle East.
New Zealand Dollar: Increased by 0.5% to $0.5805.
Chinese Yuan: Remained stable as investors assess economic data and ongoing US-China trade talks.
Source: Reuters
