New York, Jan. 10 (BNA): The US dollar fell Monday to a seven-month low against the euro as traders bet that recent economic data will prompt the Federal Reserve to slow the pace of interest rate hikes, while riskier currencies benefited. China reopens its borders.
The euro rose 0.96% to $1.0747 at 2:50 pm ET (1950 GMT), its highest level against the dollar since June 9, adding to Friday’s increase of 1.17%, Reuters reported.
The Australian dollar rose 0.8% to $0.69305, marking its highest level against the US currency since August 30, while the New Zealand dollar rose 0.45% at $0.6378.
The dollar index was at a 7-month low, down 0.81%, at 103,033. The index, which tracks the greenback against six major currencies, fell 1.15% on Friday as investors turned to riskier assets.
The moves continued the downward trend of the dollar, which in the last three months of 2022 recorded its largest quarterly loss in 12 years. This was mainly driven by investors’ belief that the Fed will not raise interest rates beyond 5%, from its current range of 4.25%-4.50%, as inflation and growth slow.
MI