Monday, supported by investors and analysts whose focus are now pointed towards Jerome Powell’s first monetary policy meeting which is due to occur this week; the U.S. Dollar stood firm against its major currency rivals. According to the dollar index: the greenback settled at 90.276, which was an inch higher from the dollar’s two-week high of 90.236 capped last Friday.
However, the greenback continues to retreat against the Japanese safe-haven yen, as investors bets decreases due to MSCI’s index of Asia-Pacific shares outside Japan which indicated a 0.2% decline. The U.S. dollar settled at 105.84 yen JPY=, against the Japanese currency, which was 0.1% lower from the dollar’s previous settlement, and an inch near the greenback’s 16-month low of 105.24 yen capped on March 2.
The stance of the U.S. dollar was supported by investors and analysts eyeing for signs or progress over the anticipated interest rate hikes from Federal Reserve Chair: Jerome Powell’s first monetary policy meeting which will be held on Wednesday this week.
The likelihood of more rate hikes usually reinforce a currency as higher interest rates attract funds, however, recent political news over U.S. President: Donald Trump’s tariffs and other protectionist policies could potentially delay the United States economy.