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

Dollar dips in quiet holiday trading

Published 12/28/2021, 08:49 PM
Updated 12/29/2021, 03:41 PM
© Reuters. FILE PHOTO: A money changer counts U.S. dollar banknotes at a currency exchange office in Ankara, Turkey November 11, 2021. REUTERS/Cagla Gurdogan/File Photo

© Reuters. FILE PHOTO: A money changer counts U.S. dollar banknotes at a currency exchange office in Ankara, Turkey November 11, 2021. REUTERS/Cagla Gurdogan/File Photo

By John McCrank

NEW YORK (Reuters) -The dollar edged lower in thin holiday trading on Wednesday, while the safe-haven yen touched a one-month low as investors looked beyond a surge in Omicron cases and favored riskier currencies.

The dollar index, which tracks the greenback against six global peers, was down 0.206% at 95.932, having turned negative around the start of the North American session.

With many traders having taken time off ahead of the year-end, analysts cautioned against reading too much into the moves.

"In times like these we trade very technically as short term jobbers try to eek out some final year-end gains," Brad Bechtel, global head of FX at Jefferies, said in a note to clients.

FX flows have been on the "lighter side of usual for a month end, corroborating the view that most of that flow happened last week or even sooner," he added.

Investor sentiment has been buoyed in recent days by signs the Omicron variant, while causing a jump in cases to record highs in many countries, is not leading to new, widespread lockdowns.

U.S. health authorities on Monday shortened the recommended isolation time for Americans with asymptomatic cases of COVID-19 to five days from a previous guidance of 10.

Risk-sensitive currencies such as the Australian, New Zealand and Canadian dollars, were higher, while stocks were mixed.

"The Omicron variant continues to rage and fails to register on this market, even as global cases topped a million for the second day running," said Saxo Bank analysts.

The Aussie was up 0.35% at $0.72515, the Kiwi was up 0.28% at $0.6823, and the loonie rose 0.16% to C$1.2794.

The euro gained 0.29% to $1.13415, while sterling rose 0.45% to $1.34875.

The Japanese yen touched 115.04 to the dollar, its lowest since late November. While the yen has been battered by the strength of investors' risk appetite, analysts said end-of-quarter investor flows were also impacting the currency.

© Reuters. FILE PHOTO: A money changer counts U.S. dollar banknotes at a currency exchange office in Ankara, Turkey November 11, 2021. REUTERS/Cagla Gurdogan/File Photo

Elsewhere, Turkey's lira dropped more than 6% to around 12.58 per dollar, eating further into huge gains made the previous week, as worries persisted over soaring inflation and unorthodox monetary policy.

In cryptocurrencies, bitcoin was last down 0.67% at $47,223, while ether, the world's second-largest cryptocurrency, was down 1.57% at $3,733.

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.