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Forex- Dollar Falls to Four-Month Low as Euro, Sterling Surge

Published 01/12/2018, 11:10 AM
The U.S. dollar continues to fall.
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Investing.com - The dollar continued to fall to four-month lows against other major currencies on Friday, despite U.S. economic data.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.65% at 91.06 by 11:08 a.m. ET (16:08 GMT), not far from a fresh four-month low of 91.03 hit earlier in the session.

The U.S. Commerce Department said that retail sales rose 0.4% in December, in line with expectations. Core retail sales, which exclude automobile sales, increased by 0.4%, also in line with expectations.

A separate report showed that that the U.S. consumer price index rose 0.1% in December, below forecasts for a 0.2% increase.

Core CPI, which excludes food and energy costs, rose 0.3% last month, above expectations for a 0.2% gain.

Elsewhere, the euro and pound rose due to the weaker dollar. EUR/USD was up 0.93% to 1.2144 while GBP/USD surged 1.09% to 1.3684.

The euro was also supported by the European Central Bank saying it could consider a gradual shift in guidance from early 2018, according to the minutes of its December meeting.

The yen was slightly lower, with USD/JPY up 0.09% at 111.37, while USD/CHF down 0.41% to 0.9718.

The Australian and New Zealand dollars recovered slightly with AUD/USD down 0.06% at 0.7886 from an earlier low of 0.7851 and with NZD/USD retreating 0.30% to 0.7240 from 0.771 before.

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