Dollar Stays Firm Against Major Counterparts

(RTTNews) - The U.S. dollar climbed higher on Monday, extending recent gains, with traders awaiting the Federal Reserve's monetary policy announcement, due later in the week.

Data showing a rebound in U.S. manufacturing sector activity, and data showing slowdown in the services and manufacturing activity in the EU, Germany and the U.K. supported the greenback.

The Fed, scheduled to announce its policy on Wednesday, is widely expected to raise rate by 25 basis points. The bank's accompanying statement is eyed for hints on the central bank's future moves.

Recent encouraging inflation data has led to optimism this week's rate hike will be the last, and traders will be looking for confirmation from the Fed.

The European Central Bank and the Bank of Japan are slated to announce their monetary polices on Thursday and Friday, respectively.

The ECB is also expected to raise borrowing costs by 25 basis points and reiterate its commitment to continue the current hiking cycle.

The S&P Global US Composite PMI declined to 52.0 in July 2023, down from 53.2 the previous month, as shown in a preliminary estimate.

The S&P Global US Manufacturing PMI increased to 49 in July of 2023 from a six-month low of 46.3 in June. The S&P Global US Services PMI dropped to 52.4 in July 2023, down from 54.4 the previous month and below market expectations of 54.0, according to a preliminary estimate.

The dollar index climbed to 101.43, gaining about 0.35%.

Against the Euro, the dollar firmed to 1.1065, gaining from 1.1126.

The dollar strengthened to 1.2818 against Pound Sterling, up from the previous close of 1.2855.

Against the Japanese currency, the dollar is weak, fetching 141.50 yen a unit. The dollar is flat against the Aussie at 0.6738. The Swiss franc is weak against the dollar at CHF0.8699, down from CHF0.8646,

Against the Loonie, the dollar is weak at C$1.3172 as oil prices rose sharply on prospects of tighter supplies in the market.