Dollar was close to hit a 14-month low versus the euro

Dollar stabilizes

The dollar was depreciated against euro last Thursday after what seems to be raising expectations of another non-dovish monetary policy in Canada and Europe, along with doubts of one more interest rate hike led by the U.S. Federal Reserve.

Remarks from Mark Carney, Bank of England (BoE) governor and two top policy makers form Bank of Canada last Wednesday heightened expectations that central banks will incite an interest rate hike. Managing director at New York’s BK Asset Management Kathy lien said the fluctuating monetary policy paths of other central banks is making other currencies more appealing in relation to the U.S. dollar.

The euro almost soared to its 14-month high with sources from the European Central Bank attempting to limit the message last Wednesday from President Mario Draghi’s speech last Tuesday largely dropping on deaf ears. The formal talk had won the side of the market that the central bank was almost ready to begin diminishing  its own emergency stimulus in an effort to improve the euro zone’s economy later this 2017.

The index that tracks the value of dollar relative to its major opposing currencies, the U.S. dollar index, fell more than 0.46 percent at 95.57 after hitting a low of 95.685 for nine months. On the previous session, the euro was already 0.55 percent higher versus the U.S. dollar at $1.1438.

Some analysts are suggesting that there is continuous scepticism surrounding traders on whether the U.S. Federal Reserve would be able to hike rates once again this 2017, but it will likely hurt the dollar.