Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Dollar broadly higher amid U.S. rate hike hopes

Published 11/16/2015, 06:12 AM
Updated 11/16/2015, 06:12 AM
© Reuters.  Dollar gains ground against rivals in risk-off trade

Investing.com - The dollar was broadly higher against the other major currencies on Monday, as growing expectations for a December rate hike by the Federal Reserve lent support to the greenback and as Friday's terrorist attacks in Paris hit risk sentiment.

EUR/USD dropped 0.43% to six-month lows of 1.0728.

Demand for safe haven assets was boosted after attackers killed more than 130 people in Paris on Friday, prompting retaliatory French air strikes against Islamic State in Syria.

The single currency was already under pressure from heightened expectations that the European Central Bank will enlarge its stimulus program, aimed at boosting price growth in the euro area, before the years end.

ECB President Mario Draghi was to speak at an event in Madrid later in the day.

The greenback remained broadly supported after Fed Vice-Chair Stanly Fischer said Thursday that it "may be appropriate" for the Fed to begin raising rates next month.

USD/JPY rose 0.33% to 123.01.

The yen showed little reaction after data showing that Japan’s economy contracted at anannual rate of 0.8% in the three months to September, after a 1.2% contraction in the previous quarter, putting the country into a technical recession.

The weak data added to pressure on the Bank of Japan to step up monetary easing measures to shore up growth.

Elsewhere, the dollar was higher against the pound, with GBP/USD shedding 0.24% to 1.5200 and was steady against the Swiss franc, with USD/CHF at 1.0066.

The Australian dollar were weaker, with AUD/USD down 0.29% at 0.7109, while NZD/USD retreating 0.80% to 0.6488.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Meanwhile, USD/CAD held steady at 1.3316.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.32% at 99.20, close to last week's seven-month highs of 99.60.

Latest comments

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.