The US dollar gained on the Great Britain pound but retreated versus the euro and the Japanese yen on Monday as traders continue to question the ability of the Federal Reserve to continue its interest rate hike cycle this year.
The Fed has raised interest rates in December for the first time in nearly a decade. Some economists were arguing that was not a good decision as the US economy is not in shape yet to endure tighter monetary policy. And slowing economic growth in other regions of the world makes the situation even worse. Monday brought a surge of risk aversion on markets, yet the dollar did not profit from it. The problem was that US stocks dropped together with other global equities, providing an evidence that the US economy has troubles indeed. EUR/USD advanced from 1.1142 to 1.1189 as of 23:52 GMT today. USD/JPY dropped from 116.80 to 115.68. GBP/USD declined from 1.4482 to 1.4432. If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.