The greenback posted a lower depreciation in today’s Asian trading session, but remained around the same price level as most of its major rivals.
The decline was influenced by the stock market moving higher ahead of major earnings reports from major US tech companies that will certainly rock the market in addition to the outcome of the FOMC policy meeting.
The Federal Reserve will begin a two -day meeting on Tuesday, followed by a speech by Chairman Jerome Powell on Wednesday, where investors will look for any clues as to when the bond -buying cuts will begin.
At the time of writing, the dollar index is trading slightly lower around 92.58 against most major currencies.
The euro took advantage of the weakening US dollar to bounce back above the 1.1800 price level despite a survey from the Ifo Institute showing German business confidence unexpectedly declining in July due to ongoing supply chain concerns and rising Covid-19 cases.
Moreover, the pound rose higher above the 1.3800 price level against the US dollar, supported by improved coronavirus development in the UK, where infection numbers have begun to show a decline since sanctions were lifted.
The situation is different in Australia which continues to record an increase in cases of infection, especially in the state with the largest population of New South Wales (NSW). A total of 172 cases were recorded in the last 24 hours.
The movement of the Aussie dollar was slightly limited following this report, after it recorded a higher rise following the decline of the greenback dollar in the previous New York session.
