2024-03-18 17:24:53
The dollar fell slightly on Monday as traders awaited a week dominated by central bank meetings around the world.
According to Reuters, the Bank of Japan (the central bank) appears to be about to end its negative interest rate policy, while the focus is on the number of interest rate cuts expected to be made by the Federal Reserve (the US central bank).
Other than Japan and the United States, central banks in England, Australia, Norway, Switzerland, Mexico, Taiwan, Brazil and Indonesia are scheduled to meet, and most of them are expected to keep interest rates unchanged.
The dollar index, which measures the performance of the US currency against a basket of major currencies, fell 0.029% to 103,430 points. The dollar rose 2.0% this year as the performance of the US economy improved more than expected, prompting investors to reduce bets that the Federal Reserve will cut interest rates at a rapid pace in 2024.
There was little change in the Japanese yen, rising 0.09% to $149.21.
The Japanese currency has witnessed fluctuations in the past few weeks, as it fell to 150.88 last month, before rising again to its highest level in a month at 146.48 at the beginning of March.
A higher-than-expected wage hike by major Japanese companies has fueled expectations that the central bank is ready to herald a new era by ending its negative interest rate policy, possibly as soon as Tuesday.
The euro rose 0.05% to $1.0893, while the British pound fell 0.04 to $1.2735 before the Bank of England meeting on Thursday. The central bank is expected to keep interest rates unchanged at 5.25%.
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