Dollar Hovering Around 16-Month Peak as Traders Awaits FED Stance on Rates Hike

Dollar index hovered around its 16-month high peak on Monday as traders awaits for more clues on the health of the U.S. economy.

The dollar index (DXY) remained almost at the same level as on Friday at 95.120 after it touched 95.266 for the first time since July 2020.

Traders are keeping a close eye on the release of U.S. retail sales data on Tuesday this week after a survey on Friday showed consumer confidence unexpectedly dipped to a decade low in early November.

The dollar came under pressure since Wednesday last week after U.S. consumer price index data showed the fastest annual pace since 1990.

Rate hike has been priced in the money market as of last week likely to be increased by July and a likelihood of another increase by November next year.

The Thai baht benefited from the weakening of the dollar, the currency pair USD/THB inched down by 0.18% Monday to THB 32.720.

Earlier on Monday, Thai GDP number showed contraction by 0.3% year-over-year compared to the growth in the second quarter of 7.6%.