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The dollar stabilized on Monday in light of a holiday in most major Asian markets that postponed the start of what could turn into a busy week, while eyes turned to US inflation data in search of indications of when the Federal Reserve (the US central bank) might start cutting interest rates.
According to Reuters, the euro fell slightly to $1.0778, moving away from the highest level in ten days that it touched in early trading, after witnessing a slight recovery last week after steady declines since the beginning of 2024.
Euro zone economic growth data in the fourth quarter of the year, which will be released on Wednesday, may provide a new trend, while the pound sterling stabilized at $1.2632.
The yen rose slightly to 149.04 against the dollar after limiting moves near the release of US January consumer price index data on Tuesday.
Data issued earlier this month indicating a strong performance in employment activity undermined the chances that the Federal Reserve would cut interest rates in March, and markets currently expect this move to occur in May.
Analysts expect the core consumer price index in the United States to record 0.3 percent on a monthly basis in January, but it will remain high on an annual basis and record 3.8 percent.
Markets are also monitoring the Japanese yen, which is highly sensitive to interest rates, which rose significantly late last year as markets expected an imminent cut in US interest rates, but has since declined with expectations that the cut date will be postponed.