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Forex- Dollar Inches Higher as Sterling Slumps on Brexit Angst

Published 11/27/2018, 02:22 PM
© Reuters.
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Investing.com - The dollar rose against its rivals Tuesday, shrugging off mostly bearish economic data, while a slump in the pound also lifted sentiment.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.29% to 97.27.

The S&P/Case-Shiller national house price index rose to a seasonally adjusted 0.3% in September, but rose just 5.1% compared to a year before, missing expectations for a 5.3% increase.

The Conference Board’s consumer confidence gauge fell to a reading of 135.7 in November from 137.9 in last month, missing economists’ forecast for a reading of 135.9.

Consumer sentiment is a leading indicator of consumer spending, which plays a major role in overall economic activity.

The dollar was also swayed by remarks from Federal Reserve Vice Chairman Richard Clarida, who continued to back gradual rate hikes and said there were was no agreement on "how close" interest rates were to neutral.

A slump in sterling helped the greenback hold gains after President Donald Trump said the Brexit agreement would hamper trade between the United States and Britain.

Traders were also eyeing the Bank of England's report on the economic impact of Brexit on Wednesday.

GBP/USD fell 0.71% to $1.2739, while EUR/USD fell 0.37% to $1.1298.

USD/JPY rose 0.17% to $113.78 as Wall Street rebounded from early-session weakness, reducing demand for safe-haven yen, even as White House chief economic advisor Larry Kudlow reportedly downplayed the prospect of U.S.-China trade deal at an upcoming G20 summit.

USD/CAD, meanwhile, rose 0.36% to C$1.3304, as falling oil prices continued to weigh on the loonie.

-- Reuters also contributed to this report.

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