The dollar firmed on Monday, the operators questioning the ramifications of the pricing plans of American president Donald Trump at the beginning of a week when the federal reserve should maintain its interest rates.
Last week, the dollar had its weakest week since November 2023 due to the appeasement of fears of customs tariffs from the Trump administration, but these fears resurfaced after it declared that He would impose radical measures on Colombia.
Rétorition measures, including customs duties and sanctions, intervene after the South American country refused two American military planes transporting migrants in the process of repression of the new American administration in immigration.
The Mexican peso, a barometer of concerns about customs duties, lost 0.8 % to 20.426 for a dollar in the first exchanges. The Canadian dollar was slightly lower at $ 1,437,15.
The euro was down 0.14 % to $ 1,0474 before the European Central Bank meeting this week, during which the central bank should reduce loan costs. The pound sterling reached $ 1,2,4615 for the last time.
The Dollar index index, which measures the American currency compared to six units, remained at 107.6, still close to the lowest level reached in one month last week.
This week, investors will focus on central banks and how political decision -makers are likely to react after Trump said he wanted the federal reserve to reduce his interest rates.
The Fed should maintain its unchanged rates at the conclusion of its two -day meeting on Wednesday, but investors will be attentive to any index indicating that a reduction in rates could take place in March if inflation continues to get closer to the objective 2 % annual from the American central bank.
Friday data has shown that US commercial activity has slowed down at its lowest level for nine months in January against the backdrop of prices, while separately sales of existing housing in the United States increased to their most high level for ten months in December.
-“Optimism has jumped about the Trump program, favorable to growth and entitled” America First “, inflationary pressures have intensified to reach their highest level for four months, and companies hire employees at the most rate Fast since 2022, “said Kyle Chapman, analyst of the exchange markets at Ballinger Group.
“This table suggests a warm labor market, and greatly supports a prolonged break from the Fed.”
In the other currencies, the Australian and New Zealand dollars have dropped slightly but remained close to their highest months reaching last week. The Australian markets are closed for the day.
The Japanese yen has strengthened from almost 0.4 % to 155.41 for a dollar in the first exchanges after the Bank of Japan increased interest rates on Friday to their highest level since the global financial crisis 2008 and revised its inflation forecasts upwards.
The governor of BOJ, Kazuo Ueda, said that the central bank would continue to raise interest rates as the increases in wages and prices are generalized, but he has offered few clues over time and pace Future rate increases.
Mark Dowding, investment director at RBC BlueBay Asset Management, said the return of attention to Japan could be a catalyst for the Yen’s appreciation in the coming weeks.
“Japanese currency remains extremely undervalued in most evaluation models and, as interest rate differences are reduced, we think that will help Yen behave better in 2025.”
