Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar slips as risk-sensitive currencies advance

EconomyDec 21, 2021 04:10PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A U.S. one dollar banknote is seen in this illustration taken November 23, 2021. REUTERS/Murad Sezer/Illustration

By Saqib Iqbal Ahmed

NEW YORK (Reuters) - The U.S. dollar dipped slightly on Tuesday as improving risk sentiment boosted riskier currencies such as the Australian dollar and the British pound.

The U.S. Dollar Currency Index was last at 96.47, down 0.03% on the day, after slipping as low as 96.336 earlier in the session. The index, which is up about 7% for the year, fell 0.1% on Monday as traders sold the greenback to book profits in the final days of the year.

Risk appetite took a blow on Monday after U.S. Senator Joe Manchin, a conservative Democrat who is key to President Joe Biden's hopes of passing a $1.75-trillion domestic investment bill - known as Build Back Better - said on Sunday he would not support the package, prompting a sell-off in global markets.

Surging Omicron coronavirus cases also pushed investors to look for safe havens such as the Japanese yen and the Swiss franc < CHF=>.

Stocks rebounded and bond yields rose on Tuesday as investors looked past the recent setbacks.

"We expect broader range trading will extend over the holiday period," Shaun Osborne, chief FX strategist at Scotiabank, said in a note.

The risk-sensitive Australian dollar bounced on Tuesday, snapping a two-day weakening streak to trade up 0.60%.

The rebound in global risk appetite also pushed the British pound up against the dollar and euro, even as British Prime Minister Boris Johnson cautioned that further lockdown measures may be needed to tackle the spread of the virus.

Despite the greenback's lackluster showing this week, the dollar index is still close to the 16-month high of 96.938 hit in late November. Investors remain bullish on the outlook for the greenback, with latest positioning data near the highest levels in more than two years.

The Federal Reserve's hawkish statement last week that it would accelerate the unwind of its asset purchases, paving the way for three quarter-percentage-point rate increases in 2022 - is expected to keep the dollar well-supported.

"We continue to anticipate the USD and CAD advancing against the majors in the new year as investors bank on tighter monetary policy being introduced by the Fed and Bank of Canada respectively," Osborne said.

The slack in Canada's economy caused by the coronavirus pandemic has substantially diminished, the governor of the Bank of Canada said on Wednesday, a key sign the central bank is set to begin hiking rates soon.

The loonie was up about 0.2% on Tuesday.

In other trading, Turkey's lira was up about 7% against the U.S. dollar, extending its historic recovery from record lows after President Tayyip Erdogan unveiled a plan he said would guarantee local currency deposits against market fluctuations.

Bitcoin gained 3.5% to $48,558 after trending lower for the past few weeks.

========================================================

Currency bid prices at 3:37PM (2037 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 96.4760 96.5170 -0.03% 7.218% +96.6420 +96.3360

Euro/Dollar $1.1280 $1.1274 +0.06% -7.67% +$1.1303 +$1.1261

Dollar/Yen 114.0950 113.6400 +0.49% +10.56% +114.2150 +113.6200

Euro/Yen 128.70 128.11 +0.46% +1.40% +128.7500 +128.0600

Dollar/Swiss 0.9236 0.9214 +0.27% +4.43% +0.9254 +0.9196

Sterling/Dollar $1.3266 $1.3210 +0.44% -2.89% +$1.3268 +$1.3196

Dollar/Canadian 1.2915 1.2944 -0.22% +1.43% +1.2945 +1.2912

Aussie/Dollar $0.7152 $0.7110 +0.60% -7.01% +$0.7156 +$0.7098

Euro/Swiss 1.0419 1.0387 +0.31% -3.59% +1.0427 +1.0388

Euro/Sterling 0.8502 0.8539 -0.43% -4.87% +0.8549 +0.8501

NZ $0.6767 $0.6716 +0.79% -5.74% +$0.6768 +$0.6704

Dollar/Dollar

Dollar/Norway 8.9380 9.0660 -1.35% +4.16% +9.0550 +8.9415

Euro/Norway 10.0858 10.2045 -1.16% -3.65% +10.2178 +10.0790

Dollar/Sweden 9.1272 9.1326 -0.14% +11.36% +9.1678 +9.1115

Euro/Sweden 10.2949 10.3094 -0.14% +2.17% +10.3334 +10.2926

Dollar slips as risk-sensitive currencies advance
 

Related Articles

Dollar edges back towards one-month low
Dollar edges back towards one-month low By Reuters - May 26, 2022

By Samuel Indyk LONDON (Reuters) - The U.S. dollar edged back towards a one-month low on Thursday, as minutes from the Federal Reserve's May meeting contained few surprises, with...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Meself Meself
Meself Meself Dec 21, 2021 9:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dollar will go higher short select crypto alts and markets
Jim Herndon
Jim Herndon Dec 21, 2021 4:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Manchin will not support socialism as purely put forth in BBB. He is saving the U.S from ruin .
Lal Badshah
Lal Badshah Dec 20, 2021 10:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sir Market goes up or down
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email