Greenback hits fresh 8-month minimums
On Monday, the US dollar dropped to its new eight-month minimums against other major currencies, following monetary policy decisions of the BOJ and the Fed. Meanwhile, market participants are waiting for new data on US manufacturing activity.
The currency pair traded quite steady, reaching its 18-month minimum of 106.38.
The Japanese yen obtained support when last Thursday the Bank of Japan made up its mind not to change its current monetary policy, thus ruining market expectations for extra money easing.
The decision came a day after the Fed did the same with its interest rates. The US major bank dropped a hint that any future interest rate increases would be data dependent.
The evergreen buck was also hurt after Thursday’s data revealing that American economy surged at the slowest rate for the last two years in the first quarter, with GDP soaring just 0.5% compared to the previous year.
Additionally, on Friday, the US Treasury flagged worries over economic policies in Japan, China, Taiwan, Germany and Korea, that all currently boast a huge account surplus.