A man who makes notes from the US dollar at a currency exchange office in the Egyptian capital Cairo. “Reuters”
Arab and international
Economy News Baghdad
The US dollar rose on Monday to a two-week high after strong economic data prompted investors last week to reassess whether the Federal Reserve will adopt monetary easing policies at a monetary policy committee meeting this week as expected.
Trading was quieter in the broader currency markets, with traders reluctant to form large positions ahead of the Federal Reserve meeting, a meeting of policy makers at the European Central Bank in Portugal, and the Bank of England’s interest rate decision on Thursday.
On Friday, strong US retail sales trimmed the chances of a rate cut this week and led the dollar to the upside, despite expectations that Federal Reserve Chairman Jerome Powell will leave the door open for future interest rate cuts.
The dollar index, which tracks the performance of the greenback against a basket of other currencies, stabilized at 97.569, close to a two-week high earlier in the session.
The euro was little changed at $ 1.1209.
The dollar remained steady at 108.60 against the yen after rising 0.15 percent on Friday.
The pound fell further, sliding to its lowest level in 2019 to hit 1.2575 US dollars, its weakest level since January. Investors are worried that Boris Johnson, the staunchest candidate to succeed British Prime Minister Theresa May, will put Britain on a path to exit the EU without a deal.