Friday witnessed the second week of decline in dollar rates in Asia, even though the US data presented a positive report. Lower than expected manufacturing statistics in the United States and rising wagers that monetary policy will be normal compared to the other nations contributed to the dollar’s decline. At 11:44 p.m., the US Dollar index, which measures the dollar’s value against other currencies, had fallen by 0.23 percent to 93.727. The USD/JPY currency pair fell 0.15 percent to 114.14.
The AUD/USD pair inclined to 0.50 percent to 0.7447 just minutes after the Reserve Bank of Australia’s meeting earlier in September. The NZD/USD exchange rate increased by 0.55 percent to 0.7122.
The USD/CNY exchange rate fell 0.25 percent to 6.4127, while the GBP/USD exchange rate rose 0.30 percent to 1.3767.
For three weeks, the dollar traded in a narrow range of 93.671, a one-year high of about 94.563 set last Tuesday. On the other hand, the dollar has been on a downward trend since the Federal Reserve began asset cutting in November, with a first interest-rate hike in 2022 fully factored in.
The re-calibrated market rate incline was triggered in most countries due to the belief that ‘transitory’ inflation would continue longer than previously believed. On the other hand, the United States is likely to be protected through an energy market gaining momentum in China and Europe. It will yield further continuing to move towards the dollar.
According to Joseph Capurso, Commonwealth Bank of Australia strategist, their forecast on the dollar from the early month of July presented solid economic growth in the United States. Still, the currency’s drivers may be shifting. If the short-term rate of interest at a global level tightens the cycle, which is so powerful that it causes stocks to correct lower, the increase in global inflation and interest rates may boost the dollar to remain in a safe haven.
Top forex brokers have a keen eye over the dollar rate in the Asian market to invest in the right way and gain profit.