US Dollar Back to Decline, Eyes on Fed

The dollar fell on Monday, September 14th against other major currencies, as a wave of mergers and acquisitions lifted sentiment in global stock markets as investors looked forward to a week crowded with events including the US Federal Reserve meeting and the appointment of a new Japanese prime minister.

Attention has been focused on the pound as the British Parliament prepares to debate a draft law that the government acknowledges will violate the terms of the European Union’s separation agreement. The currency rose 0.4% against the dollar after it suffered its worst week since March. The gains were partly due to a 0.2% drop in the dollar index, after rising for two consecutive weeks.

The US Federal Reserve meeting this week will be the first since its president, Jerome Powell, unveiled a policy shift towards more tolerance of high inflation, which in practice means keeping interest rates low for a longer period.

The euro rose to $ 1.186, while the yen rose 0.13% to about 105.9 yen, its highest level in five days.