Dollar wallows to one-month low


FE Team | Published: December 29, 2017 15:26:28


Dollar stuck near one-month low

The dollar wallowed near a one-month low against a basket of currencies on Friday, while commodity currencies such as the Australian and Canadian dollars were at two-month highs.

The dollar index against a basket of six major currencies was unchanged at 92.602 after slipping 0.4 per cent overnight to 92.573, its lowest since Nov. 27, reports Reuters.

The index was on track to lose 0.5 per cent this month.

The dollar index will likely end the year down more than 9.0 per cent, its worst showing since 2003, and a Reuters poll showed it is expected to lose a bit more ground against other major currencies next year.

The dollar sagged in 2017 although the US economy expanded, the Federal Reserve tightened monetary policy and the United States enacted a major overhaul of its tax code.

The dollar was 0.1 per cent lower at 112.735 yen. It had slipped to a nine-day low of 112.660 overnight, having gone as high as 113.750 on Dec. 12. It was headed to lose 3.5 per cent against its Japanese peer in 2017.

The euro was steady at $1.1947 and in close reach of a one-month high of $1.1959 scaled the previous day. It has gained 0.3 per cent in December.

The euro has risen 13.5 per cent this year, its strongest annual gain since 2003.

The Australian dollar was effectively flat at $0.7795 having surged to a two-month peak of $0.7810 the previous day.

The Aussie was headed for a 3.0 per cent monthly gain, lifted by a rise in the prices of commodities like iron ore and copper.

The Canadian dollar extended its overnight rally to touch C$1.2555 per dollar, its strongest since Oct. 20.

The loonie was on track to gain 2.5 per cent in December, boosted by a surge in crude oil prices.

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