The dollar is falling and the yen is near a 6-year low

The dollar fell against other major currencies as investors awaited comments from Federal Reserve Chairman Jerome Powell later on Monday, and other central bank policymakers this week for clues on monetary policy.

Currency markets have been turbulent over the past month due to the financial fallout from Russia’s invasion of Ukraine as economic costs come into greater focus, including rising inflation fueled by rising energy costs.

The US Federal Reserve raised its key interest rate by 25 basis points last week for the first time since the start of the Corona pandemic.

Traders are now focused firmly on the speed and size of upcoming interest rate increases and their ultimate peak as policymakers try to stem the rise in inflation.

The dollar index, which measures the performance of the US currency against six major currencies, fell 0.1 percent to 98.222.

The yen extended its decline on Monday, falling 0.1 percent to 119.230 yen to the dollar, after touching 119.40 on Friday, its lowest level since 2016.

The euro gained little strength against the dollar on Monday, rising 0.1 percent to $1.10585.

The Australian dollar and the New Zealand dollar fell on Monday by 0.4 percent and 0.2 percent, respectively, as risk appetite declined in various markets.