Le dollar américain is hovering near its highest level in two years, while the yuan is under threat. The Australian and New Zealand dollars are at their lowest level in two years and the Indian rupee remains under pressure

The dollar relaxed slightly on Monday but stayed close to a two-year high, as traders await a series of U.S. economic data releases this week, headlined by the December Nonfarm Employment Report, to get new clues about the Federal Reserve's rate outlook. The dollar continued to benefit from expectations of lower Fed rate cuts this year, with its rise to a two-year high last week pushing the euro to its weakest level in over two years. The Aussie was last purchased at $0.6232, while the kiwi rose by 0.27% to $0.5627

The Australian dollar moved away from its lowest levels in two years on Monday, although a likely low monthly inflation reading could put pressure on it again now that the country's central bank has become accommodative. The New Zealand dollar also rose 0.3% to $0.5629 on Monday, up for the third straight session. It is supported by its 2022 nadir at $0.5512. After a week of negotiations thinned out by the holidays, 2025 is moving up a gear with the publication this week of the American services PMI and the non-farm wage report

The Chinese yuan weakened to its lowest level in 16 months against the dollar on Monday, despite a continuing trend of strengthening the official midpoint and assurances from the central bank that it would maintain currency stability. The yuan crossed the key threshold of 7.3 to the dollar on Friday for the first time since 2023, driven down by a triple blow: an overall stronger greenback, a fall in Chinese yields, and a rise in trade tensions with other economies. On Monday, the onshore yuan fell to a low of 7.3277 to the dollar in the first few trades, the weakest level since

The Indian rupee is expected to remain under pressure on Monday, with the US dollar holding close to a two-year high, while traders will watch if the Reserve Bank of India continues its interventions near 85.80. The 1-month undeliverable futures contract indicated that the rupee would open flat or slightly below its closing level of 85.77 on Friday. The rupee has faced persistent headwinds over the past few weeks, including a stronger dollar and lukewarm capital flows as well as concerns about slowing economic growth in India