Dollar firms after hitting 7-month low

The dollar started the week on a decline, hitting a seven-month low against a basket of major currencies in Asian trading, and the yen was in focus as traders increased bets on the Bank of Japan adjusting its bond yield control policy further.

According to “Reuters”, the euro reached a new peak in nine months at $ 1.0874 in early trading, before retreating to $ 1.0861, down 0.16 percent by 0920 GMT. The Australian dollar breached the key level of $0.7000 for the first time since August, before retreating to $0.6959.

Amid the rise of the pound sterling and the Japanese yen in early trading, the dollar index, which measures the price of the dollar against a basket of currencies, fell to a seven-month low of 101.77, to continue selling from last week after data showed consumer prices fell in the United States for the first time. More than two and a half years ago in December…

The large increases in interest rates approved by the US Federal Reserve were the main driver of the dollar index’s eight percent rise last year.

The dollar stabilized in European trading, and regained its strength against the British pound, which fell in its latest trading by 0.4 percent to $1.2185.

Particular focus in the currency markets this week is on the Japanese yen due to speculation that the Bank of Japan will make more adjustments or completely abandon the policy of controlling yields at its meeting this week.

The dollar fell to its lowest level in more than seven months against the yen in early trading, before recovering and recording in the latest trading 128.35 yen, up 0.4 percent.

US markets are closed on Monday for a holiday, which makes trading thin.