The US dollar continued to experience weakness today as comments of US policy makers were less hawkish than dollar bulls have hoped for, suggesting that the long-awaited monetary tightening may be postponed, and this reduced the appeal of the US currency.
Minutes of the latest Federal Reserve policy meeting were not as optimistic as was expected, resulting in rather poor performance for the dollar last week. The greenback started this week retaining its weakness, allowing many riskier currencies, as well as gold and other precious metals, to rally. Reports that Russia pulled back its troops from the border with Ukraine also played against the dollar, reducing demand for the currency as a safe asset.
Despite the current performance of the dollar, many analysts believe that the bullish story of the greenback still has not ended. Barclays thought that the drop of the currency is a buying opportunity, while Goldman Sachs predicted that EUR/USD will resume its decline.
EUR/USD advanced from 1.2631 to 1.2689 as of 19:48 GMT today. USD/JPY declined from 107.54 to 107.11. GBP/USD traded at 1.6070 following the rally from 1.6073 to 1.6127.
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