NEW YORK: The dollar tumbled from a seven-week high on Monday, tracking declines in US Treasury yields, as investors took advantage of the greenback’s recent rise to consolidate gains, taking stock of last week’s strong US economic data and the outlook for global interest rates.
The US currency’s decline was also exacerbated by a higher-than-expected decline in US durable goods of 4.5% last month, reversing a huge December boost from Boeing. These so-called durable goods orders increased 5.1% in December.
The report dented some of hawkishness built into US rates, analysts said. US interest rates though are expected to remain higher for longer.
The US dollar index, which measures the greenback against six major peers, has risen almost 3% in February and is on track to snap a four-month losing streak.
The euro fell to its lowest against the dollar since Jan. 6 on Monday, but later rebounded to trade 0.6% higher at $1.0612 .
The dollar fell 0.3% against the Japanese yen to 136.12 yen, reversing some of its gains after rising to a more than two-month high of 136.54 earlier in the session.
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