Dollar falls for the third consecutive session

The US dollar fell against a basket of major currencies on Monday as investors weighed the effects of an increase in interest rates from the Federal Reserve on an economy that may be on the brink of recession.

The US central bank is expected to raise interest rates by 75 basis points after its monetary policy committee meeting on Wednesday. An increase of this size would effectively end the era of support for the economy that was associated with the pandemic.

The dollar index fell 0.244 percent to 106,420, with the euro rising 0.14 percent to $1.0224.

The greenback last week recorded its biggest weekly percentage drop in two months, as a rally in stocks helped undermine the dollar’s safe-haven appeal while a 50 basis point increase in interest rates from the European Central Bank lifted the euro to a two-week high.

The Japanese currency fell 0.44 percent against the US currency to 136.65 yen to the dollar, while the pound rose 0.37 percent to $1.2047.

A survey conducted by the Confederation of British Industry showed that industrial output in Britain grew at the slowest pace in more than a year in the second quarter. Still, there were initial signs of easing some of the inflation and investment challenges.

In the cryptocurrency market, Bitcoin fell 4.05 percent to $21,687.61.