Forex - Dollar Index Continues to Drop, Hits Fresh 3-Year Trough
Published Jan 15, 2018 05:15AM ET
Broadly weaker dollar extends losses vs. rivals
Investing.com - The dollar continued to drop and hit a fresh three-year low against other major currencies on Monday, still weighed by the euro's sustained strength.
Trade volumes were expected to remain light on Monday with U.S. markets closed for the Martin Luther King Day holiday.
The dollar shrugged off data on Friday showing that underlying U.S. consumer prices recorded their largest increase in 11 months in December, adding to expectations that inflation will accelerate this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.43% at a fresh three-year low of 90.23 by 05:15 a.m. ET (09:15 GMT).
The euro and the pound were higher, with EUR/USD up 0.57% at a new three-year high of 1.2266 and with GBP/USD advancing 0.45% to 1.3788.
The euro strengthened broadly after Thursday’s minutes of the European Central Bank’s December meeting said officials could consider a gradual shift in policy guidance from early 2018.
Any changes to the bank’s guidance would likely be seen by investors as an indication that policymakers are preparing to start winding down their bond buying stimulus program.
The single currency was als supported by reports on Friday that German coalition party leaders reached a breakthrough in talks to form a new government.
The yen and the Swiss franc were also stronger, with USD/JPY down 0.42% at 110.58 and with USD/CHF declining 0.51% to 0.9625.
Elsewhere, the Australian and New Zealand dollars were higher, with AUD/USD up 0.56% at 0.7961 and with NZD/USD climbing 0.62% to 0.7292.
Meanwhile, USD/CAD slid 0.32% to trade at 1.2420.
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Written By: Investing.com
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