Dollar Sees a Correction after 2-Week Rally

The U.S. dollar declined today during the Asian session against other major currencies as the traders realized their profit, closing out long positions, and turned down possibility of the rate increase until the end of the year.

The  U. S. currency retreated from the highest level against the Japanese yen since January 2. It also dropped from the highest against the euro since February 20. Although dollar also declined versus the pound, it’s still above its Friday close level against this currency.

British pound is probably the only major currency that isn’t fully following the correction against the dollar and will most likely continue to lose much against it. Great Britain currency is hurt by the fastest home price decline since 2002.

According to some currency analysts lower oil prices will reduce the U. S. CPI pressure, while the ongoing housing slump in the United States will continue long enough to prevent Federal Reserve from raising the interest rate before the year’s end.

EUR/USD rose from 1.4684 to 1.4732 as of 8:21 GMT today with a daily high at 1.4766. GBP/USD went just a little up — from 1.8644 to 1.8659 with a daily high at 1.8722. USD/JPY declined from 110.47 to 110.23 today.

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