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Dollar Exhibits Strength Against Rivals

The U.S. dollar gained against most major currencies on Monday amid hopes global central banks would step up stimulus to revive sagging economies and on positive comments by U.S. President Donald Trump about the U.S. economy.

Traders were looking ahead to the U.S. Federal Reserve's symposium in Jackson Hole, Wyoming, scheduled to take place later this week.

The Fed chief Jerome Powell's speech at the symposium is expected to provide clues about the outlook for future interest rates.

The dollar index rose to a fresh two-week high of 98.39 in late afternoon trades, gaining nearly 0.3%.

Against the euro, the dollar strengthened to 1.1077 from 1.1120. The euro gained against most major currencies this morning with traders cheering news of Germany abandoning balanced budget rules to withstand the impact of an economic slowdown.

The Pound Sterling was weak against the dollar for much of the trading session. The currency moved past $1.2150 a little before noon, but retreated soon and was last seen moving around $1.2130, down 0.14% from previous close.

The dollar was up 0.25% against the yen, with a unit of greenback fetching 106.64 yen. In late trades on Friday, the yen was 106.37 a dollar.

Data released by the Ministry of Finance showed Japan posted a merchandise trade deficit of 249.6 billion yen in July. That missed expectations for a shortfall of 194.5 billion yen following the 589.5 billion yen deficit in June.

Exports were down 1.6% on year, topping forecasts for a decline of 2.3% following the upwardly revised 6.6% drop in the previous month. Imports dipped an annual 1.2% versus forecasts for a decline of 2.3% following the 5.2% fall a month earlier.

The dollar gained more than 0.4% against the loonie with the Dollar-Loonie pair trading at 1.3328. Against Swiss franc, the dollar was up 0.35% at 0.9817 and against the Aussie, it strengthened by 0.21% to 0.6765.

The People's Bank of China said it would use market-based reform methods to help lower real lending rates and prop up a slowing economy.

The Yuan was down 0.11% against the greenback at 7.0507, falling from 7.0429 a dollar. The yuan hit a high of 7.0393 early on in the session.

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