Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
Forex - Dollar Extends Losses as ECB Taper Talk Boosts Euro
Published Jan 15, 2018 08:37AM ET
© Reuters. Dollar extends losses as ECB taper talk boosts euro
Investing.com - The dollar extended losses against a currency basket on Monday as speculation that the European Central Bank is preparing to scale back its massive stimulus program propelled the euro to more than three-year highs.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.45% to 90.21 by 08:34 AM ET (13:34 GMT), a level not seen since December 2014.
The euro hit fresh three-year highs against the dollar, building on last week’s strong surge, with EUR/USD rising 0.57% to 1.2267.
The single currency has rallied since last Thursday’s December ECB minutes said officials could consider a gradual shift in policy guidance from early this year.
Any changes to the bank’s guidance would likely be seen by investors as an indication that policymakers are preparing to start winding down their bond buying stimulus program.
A faster rate of monetary tightening outside the U.S. would lessen the divergence between the Federal Reserve and other central banks, weighing on the dollar.
The euro received an additional boost after German Chancellor Angela Merkel moved closer to forming a coalition government, potentially removing an element of political risk for the euro zone.
Against the yen, the dollar fell to its lowest levels since mid-September, with USD/JPY last at 110.67 after earlier falling as low as 110.58.
The yen was boosted by comments from Bank of Japan Governor Haruhiko Kuroda on Monday highlighting the country’s economic recovery.
Sterling also pushed higher against the dollar, with GBP/USD rising 0.37% to 1.3776, the most since Britain’s vote to exit the European Union in June 2016.
The pound rallied on Friday following a report that the Netherlands and Spain are open to a deal for Britain to remain as close as possible to the EU after Brexit.
The pound shrugged off a subsequent denial of the report from officials from the Spanish and Dutch finance ministries.
Trade volumes were expected to remain light on Monday with U.S. markets closed for the Martin Luther King Day holiday.
Related Articles
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
Add a Comment
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.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.