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Dollar slips lower vs. rivals but remains broadly supported

Published 12/21/2016, 08:17 AM
Dollar index edges lower but remains within close distance of 14-year peak
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Investing.com - The dollar slipped lower against the other majors currencies on Wednesday, but remained broadly supported in thinner trade as traders began to unwind positions ahead of the Christmas holiday.

EUR/USD gained 0.33% to 1.0423, off the previous session’s fresh 14-year low of 1.0349.

Market sentiment had soured after Russian ambassador to Turkey, Andrei Karlov, was shot and killed at an art gallery in the Turkish capital of Ankara Monday evening.

A few hours later, a truck plowed into a crowded Christmas market in central Berlin, killing 12 people and injuring up to 50 others.

Meanwhile, the greenback remained broadly supported after the Federal Reserve concluded its policy meeting last week by raising interest rates by 25 basis points and projected three more rate hikes for 2017.

Elsewhere, GBP/USD was little changed at 1.2372, still close to Thursday’s one-month low of 1.2310.

Earlier Wednesday, the U.K. Office for National Statistics reported that public sector net borrowing increased by £12.21 billion in November, compared to expectations for a rise of £11.30 billion.

Public sector net borrowing climbed £4.32 billion in October, whose figure was revised from a previously estimated gain of £4.30 billion.

USD/JPY slid 0.45% to 117.33, while USD/CHF dropped 0.37% to 1.0256.

The Australian and New Zealand dollars were mildly higher, with AUD/USD up 0.08% at 0.7266 and with NZD/USD adding 0.10% to 0.6923.

Meanwhile, USD/CAD held steady at 1.3366.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.29% at 102.97, just off Tuesday's fresh 14-year highs of 103.62.

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