Foreign Exchange Report

3rd of March 2023

April 03, 2023

Latest market and currency trends analysis featuring pie charts, bar graphs, and upward trend arrows indicating financial growth, suitable for professional investment strategies and financial planning updates by Ciprian Bratu at Finance with Cip

The US Dollar edged up on Monday on inflation fears, following an announcement by OPEC+ to cut production, with traders predicting the Federal Reserve may hike rates at its next meeting. This latest OPEC+ decision follows on from data last week revealing US consumer spending registered a moderate increase in February after a surge in January, with inflation showing indications of a cool down. “While receding broader contagion risks, positive developments in China and expectations that the Fed is nearing the end of the tightening cycle should keep sentiments broadly supported, the oil price gain due to the surprise production cut is a fresh risk to inflation,” said currency strategist at OCBC in Singapore, Christopher Wong. “Fresh inflation risks do imply the inflation fight is not over,” he added. The Dollar index – measuring the greenback against six rivals – rose 0.078% at 103.01, surpassing the 103-mark for the first time in a week, Reuters news agency reports

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Elsewhere, the Euro declined 0.44% to $1.0791, after falling to a one-week low of $1.0788, whilst Sterling was trading at $1.2277 at the time of writing, a 0.45% decline on the day. In Japan, the Yen was 0.46% weaker at 133.41 per Dollar, and USD edged up 0.32% against the Swiss Franc.

In addition, the Australian Dollar moved down 0.30% to $0.667, ahead of a Reserve Bank of Australia policy meeting taking place this week. Markets are betting the central bank will stand pat on interest rates following 10 rate increases, the Reuters report adds. The New Zealand Dollar also declined, down 0.62% to $0.622, the largest one-day percentage fall since 24th March.

South Africa’s Rand declined in early Monday trade as the Dollar firmed on the decision to reduce oil supply by major producers. At the time of writing, the Rand was trading at 17.9100 against the greenback, down 0.59% from the previous close. 

Furthermore, the Indian Rupee also fell against the US Dollar on Monday, to stand at 82.4075 to the Dollar, down from 82.1650 in the prior session.