The U.S. dollar exhibited weakness against most of its major peers on Monday, as traders awaited the release of minutes from the Federal Reserve’s latest meeting for cues on monetary policy.
The Fed’s minutes, due on Wednesday, may shed light on the monetary policy committee’s view on inflation and provide hints on the central bank’s plans with regard to tapering of its quantitative easing program.
Recent comments from some Fed officials suggested the Fed is unlikely to scale back its easy policy in the foreseeable future.
The New York Federal Reserve’s index of regional manufacturing activity showed a modest pullback in the month of May after jumping to a more than three-year high in the previous month.
The New York Fed’s report showed its general business conditions index dipped to 24.3 in May from 26.3 in April, although a positive reading still indicates growth in regional manufacturing activity.
Economists had expected the index to slip to 23.9 after reaching its highest level since October of 2017 in the previous month.
Homebuilder confidence in the U.S. held stable in the month of May, according to a report released by the National Association of Home Builders.
The report showed the NAHB/Wells Fargo Housing Market Index came in at 83 in May, unchanged from April. The unchanged reading matched economist estimates.
The dollar index dropped to 90.15, losing nearly 0.2%, after edging up to 90.37 earlier in the day.
Against the Euro, the dollar recovered to around 1.2140 from 1.2170 before weakening to $1.2160. The dollar had settled at 1.2147 on Friday.
The Pound Sterling firmed up against the dollar, fetching $1.4142, about 0.33% more than Friday’s close of $1.4096 a unit.
The Yen firmed up to 109.17 a dollar, from 109.35 a dollar. Data from the Bank of Japan showed that Japan producer prices rose 0.7% on month in April, exceeding expectations for a gain of 0.5% and up from the downwardly revised 0.6% increase in March.
The Aussie was little changed, quoting at US$0.7770 a little while ago, after dropping to US$0.7731 earlier in the day.
The Swiss franc weakened to 0.9026 a dollar, retreating from the day’s low of 0.9002.
The Loonie strengthened to 1.2068 a dollar, gaining from 1.2104, as oil prices rose sharply on optimism energy demand will see a jump in coming weeks.
The material has been provided by InstaForex Company – www.instaforex.com