Saturday , December 5 2020

The dollar moves near the 22-month high, boosted by strong US data

The dollar moved close to a 22-month high compared to its counterparts on Wednesday after strong US housing data further alleviated fears of slowing down the largest economy in the world.

FILE PHOTO: The US dollar bill is visible on this picture taken on May 3, 2018. REUTERS / Dado Ruvic / Illustration

The dollar index against a basket of six major currencies was 97,602, after rising to 97,777 overnight, which is its highest level since June 2017.

Data showing sales of new single-family homes in the United States jumped to a 1-1 / 2-year high in March on Tuesday, adding the latest positive results in retail and export sales.

The euro with the largest weighting in the dollar index was lower to $ 1.1219 after it lost 0.25% from the previous day.

"The European economy appears to be particularly weak compared to the US economy and this highlights the weakness of the euro," said Takkuya Kanda, general manager at Gaitame.Com Research.

"It is now expected that the US would have had a steady growth in the first quarter, strengthening the dollar's strength against the euro."

US GDP figures on Friday could strengthen the case that while the current period of global expansion is at a later stage, the United States is on a more solid footing than other leading economies.

The dollar was stable at 111,885 yen after having suffered slight losses overnight, weighted by a decline in long-term treasury yields.

The Australian dollar was slightly changed to $ 0.7097 after a 0.5% loss on the day before the near-by home inflation report.

Australia's first-quarter consumer price index (CPI) data is expected at 0130 GMT and analysts surveyed by Reuters expect inflation to reach about 1.7%, which reduces the central bank's target of 2-3%.

The Canadian dollar struggled near a four-week bottom of the C $ 1.3443 dollar against the dollar overnight, against expectations that the Bank of Canada would drop its tongue indicating further increases in interest rates.

The Bank of Canada is expected to maintain its steady interest rate at its meeting later on Wednesday. A Reuters study showed that the central bank is seen as a policy policy by early 2020 at the earliest.

Editing by Jacqueline Wong

Our Standards:Trust Principles of Thomson Reuters.

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