Sability of USD after falling to its lowest level in 7 months

The dollar started the week on the decline, hitting a seven-month low against a basket of major currencies in Asian trading, and the yen was in focus as traders increased bets on the Bank of Japan adjusting its policy to control its bond yields further.

The euro hit a new nine-month high of $1.0874 in early trading before easing back to $1.0861, down 0.16% by 0920 GMT. The Australian dollar breached the key level of $0.7000 for the first time since August, before retreating to $0.6959.

Amid the rise of the pound sterling and the Japanese yen in early trading, the dollar index, which measures the price of the dollar against a basket of currencies, fell to a seven-month low of 101.77, continuing its selling operations from last week after data showed that consumer prices fell in the United States for the first time in more than a year. Two and a half years in December.

The large interest rate increases approved by the US Federal Reserve were the main driver of the dollar index’s 8 percent rise last year.

The dollar stabilized in European trading, and regained its strength against the British pound, which fell in its latest trading by 0.4 percent to $1.2185.

Particular focus in the currency markets this week is on the Japanese yen due to speculation that the Bank of Japan will make further adjustments or completely abandon its yield control policy at its meeting this week.

The dollar fell to its lowest level in more than seven months against the yen in early trading, before recovering and recording in the latest trading 128.35 yen, up 0.4 percent.

US markets are closed on Monday for a holiday, making trading thin.