TOKYO- The dollar held near multi-month peaks against other major currencies on Monday, after the US Federal Reserve surprised markets last week by signaling it would raise interest rates and end emergency bond-buying sooner than expected.
The dollar index, which tracks the greenback against six major currencies, stood at 92.232 after gaining 1.9 percent last week, its biggest rise since March 2020.
On Friday, it jumped above key resistance around 91.95, marking a 61.8 percent retracement from its decline to 89.53 earlier this month from an April peak of 93.439.
“Like many, I had expected the 61.8 Fibonacci retracement in the dollar index to hold for a bit … and at least see some consolidation,” said Chris Weston, the head of research at Pepperstone Markets Ltd, a foreign exchange broker based in Melbourne.
“That wasn’t to be, and it seems technical resistance means very little when this type of re-positioning event plays out.”
The euro traded at $1.1872, having hit a 2 1/2-month low of $1.1847 on Friday.
The British pound fetched $1.3809, standing near Friday’s two-month low of $1.3791.
The Australian dollar wobbled at $0.7503, having dropped to as low as $0.7478, a low last seen in December.
