Forex News

FOREX -Dollar little changed in light, pre-Christmas trade

24 December, 2016 - Reuters
  • Yen gains on lower U.S. yields, caution before long weekend
  • Euro firm after Italy approves rescue plan for troubled bank

By Richard Leong NEW YORK, Dec 23 (Reuters) - The dollar held steady on Friday in a tight trading range, as traders moved to the sidelines ahead of the Christmas holiday weekend, leaving the greenback about half a percent below a 14-year peak set earlier this week.

The dollar will likely resume its recent rally when the new year begins. It has gained 5 percent against a basket of currencies since Donald Trump's U.S. presidential victory on Nov. 8.

"No one wants to take additional risk between now and the end of the year. They don't want to jeopardize those gains," said Stan Shipley, strategist at Evercore ISI in New York.

Traders brushed off upbeat data on U.S. new home sales and consumer sentiment, which reinforced views that the world's biggest economy is expanding at a steady clip. Bets that Trump's economic policies would promote faster U.S. growth and inflation have fed appetite for the dollar, stocks and corporate bonds, while stoking selling in traditional safe havens the yen, gold and U.S. Treasuries.

The Federal Reserve's hint that it might raise U.S. interest rates at a faster pace in 2017, along with the European Central Bank and Bank of Japan's maintaining their ultra-loose policy stance, has also bolstered the dollar in recent days.

The dollar index was marginally softer at 103.04 after trading in a 0.34 point range, and not far from the 14-year peak of 103.65 reached on Tuesday.

The euro was steady after the Italian government approved a rescue package for Monte dei Paschi di Siena after the world's oldest bank failed to raise needed capital from investors. Worries about the European bank sector also diminished after Credit Suisse and Deutsche Bank agreed to settle with the U.S. Department of Justice over claims they misled investors when selling mortgage-backed securities.

The euro was up 0.1 percent at $1.0446 , holding above a nearly 14-year low of $1.0350 set earlier in the week.

With Japan markets closed for a holiday, the yen edged up 0.1 percent against the euro at 122.45 yen and up 0.2 percent versus the dollar at 117.26 yen.

"For the yen, there's a bit of consolidation after its recent weakening," said Paul Christopher, head global market strategist at Wells Fargo Investment Institute in St. Louis, Missouri.

The yen recovered somewhat after hitting a 10-1/2-month low against the dollar this week, helped by lower U.S. yields and safe-haven bids stemming from the attacks in Ankara and Berlin, analysts said. The benchmark U.S. 10-year Treasury yield was down 1 basis point from Thursday, at 2.543 percent.

Copyright Thomson Reuters 2016. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Currency Converter


Market Rate For information purposes only. Terms of Use
For details, see My FX Dashboard

For UKForex’s customer rate
Log In or Register Now
Rate: 1.2482
=
Rate: 0.8012
=

Register Free

Send money overseas at better rates than the banks.


Get our Free Commentary



RSS Follow Facebook Twitter Follow on LinkedIn Google Plus Follow on YouTube

Get free rate alerts

/
 
Choose currency pair and enter the exchange rate. An alert will be triggered when the exchange rate is reached and an email will be sent to you. You can unsubscribe any time and your email address is safe – see our Privacy Policy.

NOTE: These rates are for informational purposes only

UKForex is rated 4.5 stars by Trustpilot based on 125 reviews.

IMPORTANT: Use of this website is subject to the Website Terms. Use of the Services of the UKForex Limited is subject to the Client Agreement. Nothing on this website constitutes or should be construed as financial advice. This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites.

UKForex is registered in England and Wales (company no. 04631395) with registered office at 1st Floor 85 Gracechurch Street, London EC3V 0AA.

DISCLAIMER: UKForex makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this web site. Read full disclaimer.

UKForex provides international money transfer services to individual clients and business customers. Use our free currency calculator, exchange rate charts, economic calendar, in-depth currency news and updates and benefit from competitive exchange rates and outstanding customer service.

UKForex is authorised by the Financial Conduct Authority (FRN: 521566) for the provision of payment services. 

Money Laundering Regulation Number (MSB): 12219180. Issued by HM Revenue & Customs (HMRC)
Read our Money Laundering Statement

Privacy Policy

ofx.com