2023.05.0821:02:00UTC+00Dollar Remains Subdued

The U.S. dollar weakened against most of its major counterparts on Monday with traders contemplating the Federal Reserve's possible moves with regard to interest rates.

The central bank is widely expected to pause its tightening cycle and a section of analysts even forecast an interest rate cut later this year.

Meanwhile, the data on consumer and producer prices, due later in the week could have a significant impact on the outlook for interest rates.

In economic news today, the Commerce Department released a report showing U.S. wholesale inventories were unexpectedly unchanged in the month of March.

The report said wholesale inventories were virtually unchanged in March, while revised data showed inventories were also unchanged in February. Economists had expected wholesale inventories to inch up by 0.1%, matching the uptick originally reported for the previous month.

The dollar index, which dropped to 101.04 in the European session, gained in strength as the day progressed and was at 101.40 a little while ago, gaining 0.18%.

Against the Euro, the dollar firmed to 1.1004 after having weakened to 1.1146.

The dollar is up against Pound Sterling at 1.2619. Against the Japanese currency, the dollar is firm at 135.11 yen, gaining from 134.86 yen.

Against the Aussie, the dollar is weak at 0.6781, down nearly 0.5%, and weak against Swiss franc as well, easing to CHF 0.8897. The dollar is little changed at C$1.3375 against the Loonie.