by Reuters
Kitco
NEW YORK, Dec 23 (Reuters) – The dollar advanced after a drop in the prior session while the euro edged lower on Monday, as market moves were being dictated by recent global central bank meetings that set expectations for diverging rate cut paths next year.
The dollar index , which measures the U.S. currency against six of its largest peers, resumed its upward trajectory, after suffering its biggest one-day drop in nearly a month on Friday following a softer than expected reading on inflation, but still above the Federal Reserve’s 2% target rate. The greenback is now on track for its fourth gain in five sessions.
The Fed last week projected a more measured pace of rate cuts than markets had been anticipating, pushing both the dollar and U.S. Treasury sharply higher.