Dollar Fluctuates Slightly, Focus Shifts to FOMC Minutes
The US dollar was little changed in quiet trading on Monday, with month-end corporate flows dominating price movements. The Bloomberg Dollar Spot Index rose less than 0.1% after a 0.8% decline last week, its biggest weekly decline since June. Meanwhile, the 10-year Treasury yield fell about 2 basis points to 4.11%, while US stocks also fell, largely driven by falling precious metals prices.
The market is awaiting the release of the December FOMC meeting minutes on Tuesday, which are expected to provide further insight into US interest rate policy. Market analyst Kyle Rodda noted that while the minutes could test expectations of a rate cut, there is unlikely to be any new information that could trigger major market volatility.
Meanwhile, the yen led gains among G10 currencies after the Bank of Japan signaled that Japanese interest rates remain very low, with further increases likely. The USD/JPY pair fell 0.4% to 155.99 before paring its losses. Meanwhile, EUR/USD fell 0.1% to 1.1761, while GBP/USD held steady at 1.3498.
Source: Newsmaker.id
