Dollar up in 1st trading session in 2023‎

The US dollar rose today, Monday, in the first trading session of the new year, moving away from the lowest level in six months that it reached recently against a basket of major currencies.

However, this rise came after a recent decline, with markets betting that the Federal Reserve (the US central bank) will soon end its monetary tightening policy, while investor sentiment remained in a fragile state.

According to “Reuters”, trading in the first sessions of the year was limited with the continuation of the holiday in many countries, including major trading centers such as Britain and Japan.

The dollar index, which measures the performance of the US currency against a basket of major currencies, rose 0.16 percent, recording 103.65, moving away from its lowest level in six months, which it reached last week at 103.38.

The euro fell about a third of a percentage point and recorded $1.0680, but it is not far from the highest level since June yet.

The dollar fell slightly against the yen at 130.94, after reaching its lowest level since August last month.

The monetary tightening policy adopted by the US Central Bank contributed to the rise of the dollar by eight percent for the year 2022, the largest annual jump since 2015.

The main focus of the markets will now focus on the movements of central banks, inflation and indications of the length and depth of the potential recession of the global economy.