Dollar is stabilizing after a fall last week

Federal Reserve System Chairman Christopher Waller stated that last week the central bank was not weakening its fight against inflation, after which the U.S. dollar fell sharply. On Monday, the dollar strengthened.

According to Reuters, on Thursday the inflation data was softer than expected. As a result, the U.S. dollar fell sharply.

On Sunday, there was a statement from Waller at the FRS that the last week's data was just one indicator, to be followed by other similar data. In his words, it is a strong sign that inflation is slowing down. He added that the FRS may now start thinking about moving to a slower rate.

Commonwealth Bank of Australia currency strategist Carol Kong believes that the market is a bit ahead of itself. He added to his words that FRS officials will indeed test the market in order to help the dollar recover from some of its recent losses.

In Kong's view, the probability of continuing high inflation in the U.S. is strong. This will make the FRS to continue using monetary policy tightening.

On Friday, a survey of U.S. consumers was conducted. The survey results showed that constant worries about inflation and higher borrowing costs negatively affected consumer attitudes in November.