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Dollar moves lower but remains supported ahead of Fed

Published 12/11/2015, 10:41 AM
© Reuters.  Dollar slides lower vs. rivals as markets prepare for Fed meeting
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Investing.com - The dollar moved lower against the other major currencies on Friday, but still remained broadly supported ahead of the Federal Reserve highly-anticipated policy meeting next week.

USD/JPY slid 0.37% to 121.12.

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.

The University of Michigan reported on Friday that its consumer sentiment index rose to 91.8 in November from 91.3 the previous month. Analysts had expected the index to rise to 92.0 last month.

The report came shortly after 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.

EUR/USD rose 0.38% to 1.0982.

Elsewhere, the dollar turned lower against the pound and the Swiss franc, with GBP/USD up 0.37% at 1.5214 and with USD/CHF declining 0.40% to 0.9838.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.93% at 0.7213 and with NZD/USD retreating 0.49% to 0.6724.

Meanwhile, USD/CAD climbed 0.52% to trade at fresh 11-1/2 year highs of 1.3695.

The commodity-related loonie remained under selling pressure amid an ongoing rout in oil prices. Crude oil futures for January delivery were down 1.82% at a seven-year low of $36.09 a barrel in U.S. morning trading.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.28% at 97.64.

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