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Dollar pushes higher vs. other majors in quiet trade

Published 09/21/2015, 08:15 AM
© Reuters.  Dollar extends gains vs. rivals in subdued trade
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Investing.com - The dollar pushed higher against against the other major currencies in quiet trade on Monday, as the greenback continued to recover from the Federal Reserve's decision to hold interest rates this month.

The dollar was higher against the yen, with USD/JPY up 0.36% at 120.43.

The greenback regained strength after the U.S. central bank left short-term interest rates unchanged last Thursday, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy.

The Fed said it wanted to see "some further improvement in the labor market," and be "reasonably confident" that inflation will increase before hiking rates.

While the decision was not completely unexpected the Fed’s concerns over the uncertain outlook for global growth rattled financial markets and pressured the dollar lower.

Markets in Japan remained closed on Monday for a national holiday.

EUR/USD declined 0.42% to 1.1251.

The euro came under pressure after European Central Bank Chief Economist Peter Praet reiterated Saturday that the bank is prepared to enlarge its monetary stimulus program if necessary to combat risks from global economic turbulence.

Earlier this month the ECB cut its forecasts for growth and inflation and indicated that its trillion-euro bond-buying program could be scaled up.

Elsewhere in the euro zone, Alexis Tsipras was set to form a new government in Greece after his left-wing Syriza party won a second general election in less than nine months.

Elsewhere, the dollar was steady against the pound and the Swiss franc, with GBP/USD at 1.5527 and with USD/CHF at 0.9695.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.26% at 0.7169 and with NZD/USD retreating 0.59% to 0.6359.

The Westpac Banking Corporation earlier reported that its consumer sentiment index for New Zealand fell to 106 in the third quarter from a reading of 113 in the three months to June.

Meanwhile, USD/CAD slid 0.35% to trade at 1.3182.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.30% at 95.65.

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