NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

FOREX-US dollar rises versus major currencies

Published 12/21/2009, 11:19 AM
Updated 12/21/2009, 11:21 AM

* Dollar climbs to more than 6-week high vs yen

* Euro still pressured by fiscal worries

* Year-end flows, Fed expectations lift greenback (Updates prices, adds comment)

By Wanfeng Zhou

NEW YORK, Dec 21 (Reuters) - The dollar rose on Monday as investors unwound bets against the U.S. currency before the year-end on a view the U.S. economy might be recovering more quickly than previously thought.

The dollar hit its highest level against the yen in more than six weeks and stayed near its best level against the euro in more than three months as investors who had sold the greenback for most of 2009 bought it back.

Solid figures on the U.S. job market and retail sales earlier this month have prompted talk the U.S. economy may recover sooner than the euro zone and Japan, helping the dollar maintain its upside momentum.

"We have a lot of traders who want to book profits this week before the end of the year," said Greg Salvaggio, senior vice president of capital markets at Tempus Consulting in Washington.

"There's also a belief that the U.S. economy is recovering at ... a much more rapid pace than many people have previously thought," he added. "As a result, traders are little bit anxious about the possibility of a shift in the Fed's interest rate policy next year."

The dollar climbed as high as 91.01 yen , according to Reuters data, the highest level since early November. It last traded at 90.92 yen, up 0.7 percent on the day.

The euro fell 0.1 percent to $1.4322 , close to Friday's low of $1.4262 on EBS, its weakest since Sept. 4.

The euro has fallen sharply from levels above $1.50 as recently as Dec. 4, partly pressured by concerns about the fiscal health of some countries on the euro zone periphery following recent rating agency downgrades on Greek debt. (Editing by Dan Grebler)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.