On Monday morning in Asia, the dollar declined, but there were only minor changes since market concerns about growth still remain.
By 11:55 PM ET, the U.S. Dollar Index, which measures the value of the dollar against a basket of other currencies, had fallen 0.03 percent to 105.10. (0355 GMT). To 135.18, the USD/JPY pair dipped 0.01 percent. Both the NZD/USD pair and the AUD/USD pair saw minor declines, both falling by 0.10 percent to 0.6802 and 0.17 percent, respectively. While the GBP/USD pair dipped 0.07 percent to 1.2087, the USD/CNY pair dipped 0.15 percent to 6.6908.
Mainland is a trading agreement, developed by China and Hong Kong. It enables foreign investors to execute interest-rate derivatives with domestic dealers. There are increasing indications of economic deterioration both here in the US and abroad.
Experts Prediction on the Remaining of the Year
The second quarter should have a negative growth rate of 2.1 percent, according to the closely regarded GDPNow prediction from the Atlantic Federal Reserve. This indicates a technical recession in the nation. Despite the prospect of a recession brought on by tightening monetary policies, Jerome Powell, the chairman of the U.S. Federal Reserve, reaffirmed this week the Fed’s commitment to taming raging inflation. A further increase of 75 basis points from the Fed this month has now been priced in by the market.
Markets are currently hyper-fixating on the risk of a sharp slowdown in the global economy. Hence, the Australian dollar, other commodity currencies, and even the euro and sterling are likely to depreciate even further into the coming week, according to Commonwealth Bank of Australia currency strategist Carol Kong.
On Tuesday, the Australian central bank meets. The minutes from the Fed’s June meeting, which are coming on Wednesday and almost certainly will sound hawkish given that the Fed decided to raise rates by a hefty 75 basis points, are also anticipated by investors. On the statistics front, the United States will disclose employment figures on Friday.