Greenback rebounds after big losses, remains over three year lows

US dollar

On Monday, the dollar gained traction after falling low last week, managing to remain above three year lows versus a basket of other major currencies.

The dollar index, which compares the dollar against other major currencies, was mainly stable at 89.081 after slightly rebounding on Friday following its decline to 88.256, marking its lowest level since December of 2014.

The United States currency has been affected by a collection of factors this year, which includes worries that Washington might follow a feeble dollar strategy and the predicted decline of its yield advantage since other countries are beginning to take a step back in easy monetary policies.

Concerns rise for the dollar, inevitably diminishing confidence for the currency as worries emerge over the U.S. budget deficit, which is estimated to expand to $1 trillion in the year 2019.

The greenback saw slight changes at 106.310 yen after dropping on Friday to 105.545, the lowest since November of 2016.

The common currency, euro, was flat at $1.2419. On Friday, the euro climbed to a three year high of $1.2556.

The strong euro has played an important role in weighing on the dollar this year. Attention was diverted on the economic indicators which are expected this week, with the likes of Wednesday’s euro zone’s purchasing managers index and the German gross domestic product figures on Friday.

The British pounds was stable at $1.4035 following its drop of 0.5 percent on Friday while from the land down under, the Australian dollar was a smidge firmer at $0.7914, following its fall of 0.5 percent the day before.

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