The dollar index declined amid the assessment of the Fed's actions

On Monday, the US dollar index slightly moved away from the 20-year high reached on June 15 at 105.79 points, after the Fed raised the cost of borrowing by 75 basis points at once. The current index value is 103.82 points.

The indicator was pressured by disappointing economic data from the United States. Last Friday, the consumer sentiment index from the University of Michigan fell to a record low – to 50 points from 58.4 points in May. This suggests that Americans are becoming more pessimistic about the economic outlook and inflation. 

Market participants fear that weak statistics may force some investors to reconsider their forecasts regarding a possible Fed rate hike.

As a result, Europe's major currencies rose against the dollar on Monday: GBP/USD rose by 0.12% to $1.2278, and EUR/USD strengthened by 0.05% to $1.0580. The euro is also strengthening ahead of the key European Central Bank forum in Portugal this week. In Russia, USD/RUB is also stable at the level of 53.40 per $1 after the deadline for repayment of the country's external debt has expired.

The Chinese yuan adheres to the sideways dynamics after the statement of the Shanghai authorities that the city has won over the recent outbreak of Covid-19.