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Dollar index slips lower but remains near 2-week peak

Published 11/11/2016, 02:22 AM
© Reuters.  Dollar edges slightly lower vs. rivals but remains supported
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Investing.com - The dollar slipped lower against the other major currencies on Friday, but remained close to a two-week peak as investors became more and more optimistic regarding a Trum presidency.

EUR/USD edged up 0.12% to 1.0909.

The dollar found support as investors began to think that a Trump presidency may not be as bad for financial markets as initially expected.

Market participants were especially hoping to see Trump's policies boost spending and inflation.

Donald Trump was declared the 45th U.S. President on Wednesday, confounding expectations for a Democratic victory.

The greenback was also boosted after the U.S. Department of Labor said on Thursday that initial jobless claims decreased by 11,000 to 254,000 in the week ending November 5.

Analysts had expected jobless claims to drop by 5,000 to 260,000 last week.

The Mexican peso remained under pressure, with MXN/USD down 0.41% at 0.0484, not far from Wednesday’s record lows of 0.0480.

In a press conference on Wednesday, Mexican central bank officials said they were watching market volatility but refrained from any measures to stem the peso’s decline.

Elsewhere, GBP/USD rose 0.24% to trade at 1.2579, the highest since October 7.

USD/JPY slid 0.34% to 106.47, just off Thursday’s more than three-month high of 106.94.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.18% at 98.60, just off Thursday’s two-and-a-half week highs of 99.08.

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