Investing.com - The dollar moved higher against the euro in holiday-thinned trade on Monday after European Central Bank President Mario Draghi warned that the euro zone economy is still weak.
During U.S. morning trade, the dollar was trading close to three-week highs against the euro, with EUR/USD sliding 0.11% to 1.3345.
Draghi said that that Europe "entered 2013 in a more stable financial environment than in recent years", but warned that the economy is still weak following three quarters of contraction and will only recover slowly this year.
The comments came in testimony to the European Parliament's committee on economic and monetary affairs.
Draghi also said the euro’s exchange rate is not a policy target but reiterated that it is important for growth and price stability.
The comments came amid speculation that data last week showing that the recession in the euro zone deepened in the fourth quarter could lead to a possible rate cut by the ECB.
Earlier Monday, ECB Governing Council member Ewald Nowotny said the euro zone economy is likely to bottom out in the first quarter of this year before beginning a slow recovery.
Investors also remained wary ahead of the upcoming Italian general elections later this month amid concerns that a hung parliament could hamper ongoing efforts at economic reforms.
The dollar was close to two-and-a-half year highs against the yen, with USD/JPY up 0.54% to 93.99 after Japan avoided criticism from the Group of 20 nations over policies that have led to a recent sharp decline in the yen.
Following the G20 summit investor attention returned to the upcoming announcement of the next governor of the Bank of Japan after Governor Masaaki Shirakawa said earlier this month that he plans to step down on March 19, three weeks earlier than expected.
The greenback was trading close to seven-month highs against the pound, with GBP/USD down 0.25% to 1.5476.
Sentiment on sterling remained weak after data on Friday showing that U.K. retail sales fell unexpectedly in January added to worries over the faltering economy and fuelled concerns that the U.K. may lose its triple-A sovereign rating.
Elsewhere, the greenback was higher against the Swiss franc, with USD/CHF rising 0.17% to 0.9232.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.29% to 1.0096, AUD/USD dipping 0.05% to 1.0304 and NZD/USD rising 0.16% to 0.8458.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.22% to 80.73.
Trade volumes were expected to remain light on Monday, with markets in the U.S. closed for the President’s Day holiday.
During U.S. morning trade, the dollar was trading close to three-week highs against the euro, with EUR/USD sliding 0.11% to 1.3345.
Draghi said that that Europe "entered 2013 in a more stable financial environment than in recent years", but warned that the economy is still weak following three quarters of contraction and will only recover slowly this year.
The comments came in testimony to the European Parliament's committee on economic and monetary affairs.
Draghi also said the euro’s exchange rate is not a policy target but reiterated that it is important for growth and price stability.
The comments came amid speculation that data last week showing that the recession in the euro zone deepened in the fourth quarter could lead to a possible rate cut by the ECB.
Earlier Monday, ECB Governing Council member Ewald Nowotny said the euro zone economy is likely to bottom out in the first quarter of this year before beginning a slow recovery.
Investors also remained wary ahead of the upcoming Italian general elections later this month amid concerns that a hung parliament could hamper ongoing efforts at economic reforms.
The dollar was close to two-and-a-half year highs against the yen, with USD/JPY up 0.54% to 93.99 after Japan avoided criticism from the Group of 20 nations over policies that have led to a recent sharp decline in the yen.
Following the G20 summit investor attention returned to the upcoming announcement of the next governor of the Bank of Japan after Governor Masaaki Shirakawa said earlier this month that he plans to step down on March 19, three weeks earlier than expected.
The greenback was trading close to seven-month highs against the pound, with GBP/USD down 0.25% to 1.5476.
Sentiment on sterling remained weak after data on Friday showing that U.K. retail sales fell unexpectedly in January added to worries over the faltering economy and fuelled concerns that the U.K. may lose its triple-A sovereign rating.
Elsewhere, the greenback was higher against the Swiss franc, with USD/CHF rising 0.17% to 0.9232.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.29% to 1.0096, AUD/USD dipping 0.05% to 1.0304 and NZD/USD rising 0.16% to 0.8458.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.22% to 80.73.
Trade volumes were expected to remain light on Monday, with markets in the U.S. closed for the President’s Day holiday.