Currency Report: Dollar Still Strong | IEX.nl

(ABM FN-Dow Jones) The dollar strengthened against the British pound on Monday morning, as currency traders and investors expect the Federal Reserve to raise interest rates more aggressively.

“Since the beginning of the Russian invasion of Ukraine, expectations about the future rate path of the Fed have risen,” Commerzbank said. “Reviewing expectations calls for reviewing the dollar exchange rate.”

The dollar index rose 0.3 percent to 99.1160 on Monday morning, after previously recording 99.225, the highest level in two weeks.

The euro was down 0.3 percent on Monday morning at 1.0960, but recovered in the morning to a nearly unchanged level at $1.0980.

The euro fell 0.6 percent against the dollar last week, to close at $1.0982 on Friday.

The British pound is weaker against the dollar. In the absence of key economic data from the UK this week, the British Pound is likely to be driven by external factors. According to ING analysts, “the pound may continue its downtrend” to $1.30. “We continue to view the euro as being more exposed to some dollar strength, given the increased sensitivity to energy prices and greater divergence in monetary policy toward the US.”

ING does not believe the euro will fall more than 0.8300 against the British pound. On Monday morning, the British pound fell 0.2 percent against the dollar at 1.3159. The euro fell 0.1 percent to 0.8332 pounds.

By: ABM Financial News.

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Source: ABM Financial News