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Currency markets mixed on Wednesday

Published 12/21/2016, 03:00 PM
Updated 12/21/2016, 03:22 PM
© Reuters.  Dollar down against pound, yen
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Investing.com - The dollar was down slightly against the yen and the euro today, as some investors snagged profits on recent gains in the greenback.

The dollar/yen pairing, or USDJPY, -0.27%, was moving at ¥117.55, compared with ¥117.88 late Tuesday in New York.

The dollar/euro pairing, EURUSD, +0.3658% , increased to $1.0428 from $1.0388 yesterday after hitting a nw multiyear low of $1.0352, the lowest level since January 2003.

The ICE U.S. Dollar Index DXY, -0.23% a measure of the buck against a basket of major currencies, fell 0.3% to 103.01, while the WSJ Dollar Index BUXX, -0.17% was down 0.3% at 93.09.

Analysts said investors were taking profits on yen bets made earlier.

The Bank of Japan made news yesterday by keeping its monetary policy unchanged -- in contrast to the Federal Reserve Bank of the U.S. which increased interest rates last week.

The euro has struggled to go over 1.04. The idea that the dollar/euro could test parity—at least for now has been obviated, writes Tony Cross, market analyst for TopTradr, in a note to investors, obtained by Investing.com. “Political risk remains a notable risk.”

President-elect Trump has made little news today to move the markets.

At around 3:30 p.m. today, the transition team, at Trump's vacation home in Florida, indicated the new president was meeting with the CEOs of Boeing (NYSE:BA) Corp. and Lockheed Martin Corp (NYSE:LMT).

Both international defense contractors are said to be behind schedule and over budget for their airplane projects for the U.S., and Trump has said he will "personally" negotiate with their leaders to get the contracts back on track.

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