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Dollar falls broadly vs. rivals on U.S. rate hike uncertainty

Published 03/23/2015, 07:10 AM
Updated 03/23/2015, 07:10 AM
© Reuters.  Dollar broadly lower vs. other majors as Fed continues to weigh

Investing.com - The dollar was broadly lower against a basket of other major currencies on Monday, as uncertainty over the timing of a U.S. rate hike continued to weigh on demand for the greenback.

The dollar remained under pressure amid uncertainty over the path of U.S. monetary policy after the Federal Reserve downgraded its forecasts for growth and inflation and lowered its interest rate projections last week.

However, despite the past week’s reversal the greenback was likely to continue to strengthen, with the Fed still expected to raise interest rates ahead of other central banks.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.23% to 97.82.

EUR/USD advanced 0.41% to 1.0863.

The single currency found some support after Greek authorities said on Friday that they were moving towards meeting the requirements of international creditors on a more detailed reform plan in order to secure the additional bailout funds required to prevent the country's bankruptcy.

Later Monday, ECB President Mario Draghi was to appear before a European Parliament committee, with the situation in Greece likely to be high on the agenda.

The pound lost some grounf, with GBP/USD shedding 0.30% to 1.4909.

The Confederation of British Industry earlier reported that its index of industrial order expectations fell to zero this month from a reading of 10 in February. Analysts had expected the index to slip to 9 in March.

Elsewhere, the dollar was lower against the yen and the Swiss franc, with USD/JPY slipping 0.15% to 119.86 and with USD/CHF edging down 0.14% to 0.9732.

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Meanwhile, the Australian and New Zealand were stronger with AUD/USD rising 0.35% to 0.7801 and NZD/USD gaining 0.32% to 0.7589.

The Canadian dollar was lower on the other hand, with USD/CAD adding 0.19% to trade at 1.2576.

Later in the day, the U.S. was to release a report on existing home sales.

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