economy and politics

Dollar rises before a busy week for central banks

Dollar rises before a busy week for central banks

The dollar advanced on Monday, recovering some of the ground lost earlier in the month, at the start of a week full of data releases and monetary policy meetings by several central banks, including the Bank of England and the Federal Reserve.

* The euro EUR=EBS was down 0.5% at $0.9919 and sterling GBP=D3 was down 0.56% at $1.1549. Meanwhile, the greenback rose 0.57% against the Japanese yen, to 148.2 units.

* The dollar is headed for a monthly decline in October – the first since May and only the second this year – on growing expectations that the Fed could signal a less aggressive program of rate hikes at its monetary policy meeting that begins on Tuesday.

* The market expects the Fed to carry out another rate hike of 75 basis points (bps) after the conclusion of the FOMC meeting on Wednesday.

* The Chinese yuan fell after data released on Monday showed Chinese factory activity fell unexpectedly in October, weighed down by weakening global demand and tight domestic COVID-19 restrictions.

* The dollar was up 0.68% against the foreign-traded yuan CNH=D3 at 7.31.

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