The US Dollar strengthened against several major currencies on Monday as markets anticipated a Federal Reserve interest rate hike scheduled for Wednesday. According to FX Street, the US Dollar Index rose 0.37% to trade near 99.46 during the European session, while USD/JPY climbed 0.44% to around 154.20. Other pairs such as NZD/USD and GBP/USD fell to approximately 0.5780 and 1.3505 respectively amid the dollar’s advance.
Silver prices also faced pressure, with XAG/USD trading near $63.50 per troy ounce during Asian hours, declining further to about $63.00 as investors factored in the expected Fed tightening in September, FX Street reported. Meanwhile, USD/IDR continued its upward trend, reaching around 17,700 for the third consecutive day, and USD/CAD traded near 1.3875 in early European trading.
For Japanese investors, the strengthening dollar and rising US yields could influence the Yen’s performance and equity markets, especially given the proximity of the Fed’s policy announcement this Wednesday.