The dollar has crept higher, turning around from recent six-month lows against a number of major currencies.
The dollar has become weaker due to market speculation that the Federal Reserve’s tightening cycle is reaching its conclusion.
Many countries, including major trade centers such as the United Kingdom and Japan, were closed for holidays on the first trading day of the year, resulting in a gloomy mood.
The dollar index, which measures the value of the greenback relative to a basket of major currencies, increased by almost 0.14% to 103.63 – off six-month lows reached last week at approximately 103.38.
The euro fell by over a third of a percent to $1.0683, but was still close to its June highs. The British pound fell 0.35% to $1.2051.
The dollar sank 0.25 percent against the yen, reaching its lowest level since August last month.
Since March, the Fed has increased interest rates by a total of 425 basis points to combat soaring inflation. The Fed has begun to decrease the rate of rate increases.
This Fed tightening contributed to an 8% increase in the dollar index in 2017, the largest annual increase since 2015.