Dollar Weakens for Five Consecutive Days
The US dollar index fell toward the 99.5 level during Monday's trading, extending its decline for a fifth straight session. Pressure on the dollar mounted after Japan confirmed it had conducted a coordinated yen-buying operation with the United States.
Bank of Japan data indicates that the Japanese government likely spent up to US$58.97 billion on the operation last Thursday. The move boosted the yen and weighed on the dollar against other major currencies.
Japanese authorities also stated they are prepared to undertake further coordinated interventions if necessary. The government emphasized that it maintains close communication with US officials to ensure stability in the foreign exchange market.
In the United States, investor attention has shifted to this week's slate of labor market data. The monthly employment report, due out on Friday, is a key focus as it could influence the Federal Reserve's interest rate policy direction.
Last week, the Fed held interest rates steady, although three officials dissented and warned of the risk that more aggressive tightening would be required if action were delayed too long. Markets currently price in a roughly 68% probability of a 25-basis-point rate hike in September.
Source: Newsmaker.id
