Dollar remains broadly higher on U.S. rate hike hopes
Investing.com
Published Oct 11, 2016 10:50AM ET
Dollar holds onto gains vs. rivals in quiet trade
Investing.com - The dollar remained at two-month highs against the other major currencies on Tuesday, as hopes for a U.S. rate hike before the end of the year continued to lend broad support the greenback.
EUR/USD dropped 0.56% to fresh two-month lows of 1.1073.
Demand for the U.S. dollar remained supported as Friday’s disappointing U.S. jobs data was not expected to prevent the Federal Reserve from raising interest rates later this year.
In the euro zone, the ZEW Centre for Economic Research said that its index of German economic sentiment rose to 6.2 this month from September’s reading of 0.5. Analysts had expected the index to increase to 4.3 in October.
Additionally, the index of euro zone economic sentiment increased to 12.3 in October from 5.4 a month earlier. Consensus was looking for an increase to 6.3.
GBP/USD declined 0.86% to trade at a 31-year low of 1.2256.
The pound remained under broad selling pressure amid sustained concerns over a ‘hard Brexit’ for Britain.
Elsewhere, USD/JPY was little changed at 103.65, while USD/CHF gained 0.52% to 0.9877.
The Australian and New Zealand dollars pushed lower, with AUD/USD down 0.85% at 0.7543 and with NZD/USD tumbling 1.14% to 0.7053.
Earlier Tuesday, the National Australia Bank said its business confidence index remained unchanged at 6 in September.
Meanwhile, USD/CAD rose 0.33% to trade at 1.3218.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.56% at 97.44, the highest since July 27.
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Written By: Investing.com
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