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Dollar holds gains vs. other majors in quiet trade

Published 05/25/2015, 10:53 AM
© Reuters.  Dollar remains higher vs. counterparts in subdued trade
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Investing.com - The dollar remained broadly higher against a basket of other major currencies on Monday, as U.S. data showing that consumer prices rose for a third straight month in April and comments by Federal Reserve Chair Janet Yellen continued to support.

Trading volumes were expected to remain thin with markets in the U.K., Germany and the U.S. closed for holidays.

The dollar strengthened broadly on Friday after data showed that U.S. core consumer prices rose 0.3% in April and were 1.8% higher on a year-over-year basis, the largest increase since October.

The greenback received an additional boost after Fed Chair Janet Yellen reiterated that the bank still expected to start raising interest rates later this year if the economy continued to improve as expected.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.27% to 96.51.

EUR/USD slid 0.40% to one-month low of 1.0969 as the prospect of a Greek default continued to weigh.

On Sunday Greece’s Interior Minister Nikos Voutsis warned that the country would be unable to make a €305 million payment to the International Monetary Fund due on June 5 if a cash-for-reforms deal with its international lenders is not reached by then.

The pound was also lower, with GBP/USD down 0.22% to 1.5464.

The dollar was also little changed against the yen and the Swiss franc, with USD/JPY at 121.50 and with USD/CHF at 0.9439.

The Australian and New Zealand dollars were steady, with AUD/USD at 0.7827 and NZD/USD at 0.7311.

Meanwhile, USD/CAD rose 0.24% to trade at 1.2308.

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