The US dollar remained under severe selling pressure on Monday’s trading session as the dollar index DXY recorded its lowest in four months. The main reason behind the falling of dollar was the optimism for single currency that traders maintain ahead of meeting of European Central Bank this week.
Investors are looking for countries and their currencies which are soon to increase their key interest rates to tackle inflationary pressures. Euro zone happens to be the top in that list and is expected to go for higher interest rates to handle the region’s sovereign debt problem.
The Euro surged to 1.3804 versus the US dollar as compared to 1.3750 on Friday’s North American trading session. The single currency has advanced 0.6 percent in the month of February versus the greenback. The Euro also performed versus the Japanese Yen and gained 0.5 percent to 112.86 versus the Yen.
The dollar index DXY which measures the greenback’s movement versus its six major counterpart currencies dropped to 76.756 on Monday which happens to be the lowest since November 2010. As compared to February the index has declined by 1.1 percent whereas it has reported the decline of 2.7 percent since the start of 2011. The index stood at 77.24 on Friday’s trading session.
The British Pound also moved up to 1.6265 on Monday against the US dollar as compared to 1.6094 on late Friday’s trading session. The pair GBP/USD gained 1.4 percent in the month of February.
The US dollar however gained versus the Japanese Yen to 81.78 on Monday as compared to 81.66 as on Friday.
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Daily forex trading news written by Rehan from DailyForexTrade.com
