The dollar continued its decline against the yen and euro on Monday, following a sudden collapse in negotiations over the U.S. debt ceiling and comments from Jerome Powell, the Chairman of the Federal Reserve, who prefers to slow down the rate of interest rate hikes. The dollar fell by 0.15% to 137.725 yen at the beginning of the week, after ending a multi-day streak of gains on Friday, retreating from a multi-month high.
Meanwhile, the euro rose by 0.14% to 1.08205 dollars, continuing the upward trend it experienced on Friday. Investors are currently awaiting an important meeting between U.S. President Joe Biden and Republican House Speaker Kevin McCarthy on Monday to discuss raising the debt ceiling.
The dollar index experienced a slight change, reaching 103.07 points, hovering around its highest level of 103.63 points from last week. Additionally, the British pound rose by 0.14% to 1.2464 dollars, continuing its recovery from a three-week low recorded last week. The New Zealand dollar increased by 0.16% to 0.62855 dollars. Conversely, the Chinese yuan fell to 7.0359 against the dollar in offshore trading, returning towards its lowest level in six months, which was 7.0750 on Friday.
