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Dollar holds steady vs. rivals after U.S. data

Published 12/11/2015, 08:37 AM
© Reuters.  Dollar almost unchanged against other majors
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Investing.com - The dollar held steady against the other major currencies on Friday, after the release of globally positive of U.S. data amid growing speculation the Federal Reserve will raise interest rates next week.

USD/JPY held steady at 121.61.

Data showed that U.S. retail sales rose 0.2% in November, compared to expectations for a 0.3% gain, after a 0.1% uptick the previous month.

Core retail sales, which exclude automobiles, increased by 0.4% last month, beating expectations for a 0.3% rise.

A separate report showed that U.S. producer prices rose 0.3% in November, compared to a 0.1% fall.

Core producer prices, which exclude food and energy, gained 0.3% in November, exceeding expectations for a 0.1% uptick.

Demand for the dollar continued to be underpinned by expectations that the Fed is on track to raise interest rates for the first time since 2006 at its upcoming meeting on December 15-16.

Higher interest rates would make the dollar more attractive to yield-seeking investors.

EUR/USD was little changed at 1.0950.

Elsewhere, the dollar was almost unchanged against the pound and the Swiss franc, with GBP/USD at 1.5155 and with USD/CHF rising 0.17% to 0.9878.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.87% at 0.7217 and with NZD/USD sliding 0.30% to 0.6740.

Meanwhile, USD/CAD gained 0.24% to trade at fresh 11-1/2 year highs of 1.3657.

The commodity-related loonie remained under selling pressure amid an ongoing rout in oil prices. Crude oil futures for January delivery were down 0.91% at a seven-year low of $36.42 a barrel in European afternoon trading.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 97.87.

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