Analyst of the Senior CSA Research Institute Reza Priyambada remarked that the lack of concern over the trade war between the United States and its trading partners has made the US dollar tend to be restrained.
"This time, the market has responded well to a trade agreement reached between the US and Mexico, which encourages the market participants` interest in the assets of developing countries," he remarked.
On the other hand, he noted that market participants also responded to the FED`s statement at the end of last week that said there would be a gradual increase in the FED`s interest rate as the US economy improves.
"This statement reduces uncertainty about the FED`s plans for interest rates," he stated.
FXTM`s Global Head of Currency Strategy & Market Research Jameel Ahmad remarked that the FED Chair Jerome Powell`s speech in Jackson Hole stating that the pace of monetary tightening next year would not be the same as 2018 has made a difference in consensus among market participants.
"Some parties interpret the FED as having no reason to accelerate the increase of interest rate, but some consider there will be a gradual rate hike that implies a consistent tightening of the US monetary policy. This varied consensus may make the movement of various currencies to vary," he added.
Reporting by Zubi Mahrofi
Editing by Eliswan Azly
Reporter: Antara
Editor: Sri Haryati
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