US dollar stronger, but declines versus rupee

The US dollar strengthened on Monday, but analysts were not convinced that conditions had turned dollar-positive for the long term. The dollar added 0.2 percent against both the yen and the euro, to ¥118.90 and $1.3560 respectively, while it added $1.9995 in relation to sterling, a gain of 0.1 percent. Meanwhile, the Australian dollar dropped 0.6 percent to $0.8325 against the US dollar. On the other hand, the Indian rupee hit a nine-year high versus the US currency at Rs41.56 to the dollar ahead of a new decision on interest rates in India as the Reserve Bank of India began its latest meeting.

Despite its decline versus the greenback, the yen strengthened a bit after Standard & Poor’s raised its long-term rating on Japan’s debt from AA-minus to AA. While the yen held steady against sterling at ¥237.60, it added 0.1 percent to ¥161.15 versus the euro. The Bank of Japan is widely expected to hold interest rates steady when it meets later in the week.

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