Bennie Kincaid 
The dollar value has reportedly edged lower in the recent session and has finally declined from its peak price against the major currencies.
Dollar Price Peaked on Friday
The dollar price had been moving higher for a long time and it was for six consecutive weeks that it had continued surging.
It was on Friday when the trading price of the dollar had reached its six-week peak price. The investors had hoped that the Monday trading day would be even better for the dollar price.
It was expected that the trading price of the dollar would continue rising as more support will fall in its favor. Unfortunately, things did not work out the way expected and it reportedly edged lower.
The surprising thing is that the trading price of the dollar has declined despite the strong enforcement of the economic data supporting the hawkish sentiments of the US Feds.
The latest data shared by the US Government and the Feds show that the inflation rates are still on the rise. This means that the Feds will need to implement a stricter monetary policy to tame inflation rates.
As history goes, whenever there are high expectations of interest rate spikes, the value of the dollar moves higher. This time, however, the value of the dollar has moved lower, which is very alarming for the Feds.
DXY Slipped by 0.2%
The latest report from the US forex market shows that the US dollar index (DXY) has recorded a slide in the Monday session. It has reportedly declined by 0.2% in the recent session, bringing the dollar down to 103.81.
Although the dollar price and the dollar index declined, it has still remained in positive territory in the month of February. The monthly performance shows that the dollar price is still 1.8% higher for the entirety of the month.
If the dollar ends February in the greens, it would be the first month since September 2022 that the dollar will have ended a month in the positive territory.
On Friday, the trading value of the dollar hit a six-week peak price, when it surged to a high of 104.67.
The analysts had already made a prediction about the trading price of the dollar in the Monday trading session.
They had predicted that the price of the dollar may not make a movement due to Presidents’ Day. Not much liquidity was recorded for the dollar in the Monday trading session.
This reportedly pulled the trading price of the dollar against the major currencies.
Factors Compelling the Feds to Remain Hawkish
The data shows that the largest economy in the entire world has been plagued by hotter-than-expected inflation data.
The key inflation data shows that the producer prices are moving higher, the retail sales are robust, the consumer prices are sticky and the labor market is tight.
With the release of the latest data surrounding inflation, it has been predicted by economists that the Feds may remain hawkish towards interest rate hikes.
They may not change their stance towards the monetary policy and keep it tighter. If that is the case, then the trading price of the dollar may continue surging.
On the other hand, economists are worried that the Feds may be taking the monetary policy tightening too far. If they continue increasing the interest rates, the economy may fall into recession.
Swedish Crown Records a Push
While the dollar price has recorded a decline, the value of the Swedish crown has continued surging against all major currencies, including the greenback.
The data shows that the euro recorded a 1.1% fall against the Swedish crown, moving down to 11.05 crowns. As for the dollar, its price has fallen by 1% against the crown. Its value is now at a low of 10.3405 crowns.
As for the dollar, its price has plummeted by 0.2% versus the trading price of the yen. On the other hand, the value of the Australian dollar has increased by 0.6%.
