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Dollar slips lower vs. rivals in cautious trade

Published 01/14/2016, 05:57 AM
© Reuters.  Dollar edges lower but remains supported as oil prices continue to drop
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Investing.com - The dollar slipped lower against the other major currencies on Thursday, as Brent oil prices fell to a fresh 12-year trough, adding to fears over the outlook for global growth.

The dollar strengthened as prices for Brent crude, the global benchmark, fell below the $30 per barrel threshold for the first time since 2004, pressured lower by a global supply glut and fears of a slowdown in China.

The ongoing oil rout weighed on the commodity-related Australian, Canadian and New Zealand dollars.

AUD/USD dropped 0.37% to four-month lows of 0.6930 and NZD/USD tumbed 1.01% to two-month lows of 0.6449, while USD/CAD rose 0.22% to fresh 12-1/2 year highs of 1.4370.

Earlier Thursday, the Australian Bureau of Statistics reported that the number of employed people declined by 1,000 in December, compared to expectations for a 12,500 drop.

The number of employed people increased by 75,000 in November, whose figure was revised from a previously estimated gain of 71,400.

Australia’s unemployment rate remained unchanged at 5.8% in December, confounding expectations for an uptick to 5.9%.

Meanwhile, USD/JPY added 0.10% to 117.80.

Investors also remained cautious after a series of apparently coordinated gun and bomb attacks were carried out in the heart of the Indonesian capital of Jakarta Thursday morning. At least four people were killed.

EUR/USD gained 0.34% to trade at 1.0914.

Elsewhere, the dollar was higher against the pound, with GBP/USD down 0.25% to 1.4373, close to Tuesday’s five-year low of 1.4349, and was lower against the Swiss franc, with USD/CHF slipping 0.20% to 1.0037.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% at 98.82.

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