Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar Slips to 5-Week Lows in Holiday-Thinned Trade

Published 11/23/2017, 08:34 AM
Updated 11/23/2017, 08:34 AM
© Reuters.  Dollar slips to 5-week lows in holiday-thinned trade

© Reuters. Dollar slips to 5-week lows in holiday-thinned trade

Investing.com - The dollar slid to five-week lows against a basket of the other major currencies on Thursday amid concerns over sluggish U.S. inflation as trade volumes remained thin with U.S. markets staying closed for the Thanksgiving Holiday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.12% to 93.04 by 08:20 AM ET (13.20 GMT), the weakest level since October 19.

The dollar remained on the defensive after the minutes of the Federal Reserve’s November meeting showed that some officials were concerned inflation would stay below the bank's 2% target for longer than expected.

The minutes echoed comments by Fed Chair Janet Yellen earlier in the week that she was uncertain about the inflation outlook.

While a rate hike in December is still almost fully priced in, investors pared back expectations for further rate hikes in 2018, sending the dollar lower.

The dollar was at two-month lows against the yen, with USD/JPY last at 111.24 after going as low as 111.07 overnight.

The euro pushed higher, with EUR/USD rising 0.21% to 1.1845, moving closer to the one-month high of 1.1859 reached last week.

In the euro zone, data on Thursday showed that private sector output rose at the fastest pace in six-and-a-half years in November, with companies reporting a surge in output and hiring.

Separately, the minutes of the European Central Bank’s October meeting showed that policymakers agreed about a decision to extend the duration of its asset purchase program, but were far from unanimous in keeping the scheme open-ended.

That indicated that any further extension of the asset purchase program could run into opposition.

Meanwhile, sterling was little changed against the dollar, with GBP/USD at 1.3355 after data confirmed that the UK economy grew 0.4% in the third quarter, but remained reliant on household spending despite a squeeze on household finances.

Latest comments

Ok
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.