The US dollar fell for a third straight day against rival currencies on Monday, as expectations grew that the US central bank will cut interest rates in the coming months.
Despite strong US jobs data in December last week, market watchers believe the world’s biggest economy is losing momentum, and comments by Federal Reserve Chairman Jerome Powell reinforced expectations that the central bank may adopt a more cautious outlook.
On Friday, Powell told the US Economic Association that the board does not adopt a predetermined path of interest rate increases and will take into account the downside risks the market takes into account.
The dollar index, which tracks the performance of the greenback against a basket of rival currencies, fell around 0.25 percent to 95.92, nearing a two-month low recorded last week.
The euro and the Australian dollar led the gains, and the latter benefited from news earlier this week that China had strengthened its stimulus policy.
Australia’s dollar, which is heavily affected by China, rose nearly 0.5 percent to $ 0.7140, while the US dollar rose 0.2 percent against the yuan in foreign trade to 6.8483 yuan.