Dollar Weakens, But Remains a Monthly Winner
The US dollar weakened slightly on Friday (February 27th), but remains on track to post its first monthly gain since October. Reuters noted that the DXY rose around 0.64% throughout February, supported by a combination of geopolitical tensions and expectations that US interest rates will likely remain stable for a longer period.
In the last update, the DXY was around 97.6 (a slight daily move). The dollar's monthly gain was driven by increased market attention on US-Iran tensions following talks that failed to produce a breakthrough, as well as more heated US producer inflation data.
In Europe, EUR/USD was at 1.1823 (around +0.21% vs. the previous close), while GBP/USD was at 1.3461 (around -0.16%). These movements reflected the market continuing to weigh the outlook for ECB and Bank of England interest rates amidst data and domestic political dynamics in the UK.
In Asia, USD/JPY was at 155.99 (around -0.10%), while USD/CNY rose to 6.8582 (around +0.25%) after the People's Bank of China (PBOC) lowered the cost of buying dollars in the forward market. AUD/USD strengthened to 0.7121 (around +0.20%), maintaining its relatively solid monthly performance.
Source: Newsmaker.id
