Dollar firm as US rates and earnings take centre stage
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The dollar ticked higher against the euro and yen in subdued trade after last week's volatility, with markets taking their lead from the Fed's higher-for-longer messaging and a firmer Wall Street ahead of results from megacap growth companies. Dollar/yen was steady on Monday, up 0.08% ahead of the Bank of Japan's (BOJ) policy review on Friday, trading at 154.75, a whisker away from last week's 34-year low of 154.79 and close enough to the 155-level that is next on traders' radars for possible intervention. The dollar's trade-weighted index was up 0.22% at 106.33, but off the five-month highs hit last week after comments from Federal Reserve officials and a run of hotter-than-expected inflation data forced a paring back of U.S. rate cut expectations. A cooling in Middle East tensions, which had driven the dollar, gold and oil sharply higher on Friday and battered stock markets, also helped temper volatility. The euro, which is heading for its biggest monthly drop against the dollar since January, was down 0.27% at $1.0628, while sterling fell 0.54% to $1.2302. Besides the BOJ meeting and earnings due from megacaps like Tesla on Tuesday, Meta on Wednesday and Microsoft, and Alphabet on Thursday, investors will get U.S. first-quarter GDP data on Thursday and the inflation metric the Fed targets, the personal consumption price expenditures (PCE) index.



https://m.economictimes.com/markets/forex/dollar-firm-as-us-rates-and-earnings-take-centre-stage/articleshow/109508592.cms