Dollar Retreats From 4-week High, Loses Ground Against Most Of Its Peers
The U.S. dollar turned easy on Thursday, retreating from a four-week high it had touched a session earlier, as the euro strengthened amid optimism about economic recovery, and the pound sterling gained after the European Union signaled its willingness to continue Brexit talks.
A recovery in crude oil prices lifted the loonie against the greenback, and increased risk appetite after technology stocks rebounded from recent heavy losses rendered the safe haven currency somewhat subdued.
The dollar index, which advanced to 93.66 in the Asian session, dropped to 93.14 around mid morning, and was last seen at 93.25, down 0.21% from previous close.
Against the Euro, the dollar was down 0.3% at $1.1809, after falling to a low of $1.1833 earlier in the day. Meanwhile, traders were looking ahead to European Central Bank’s monetary policy announcement due on Thursday. The ECB is likely to discuss the Euro’s strength against the dollar. The bank’s chief economist had stated last week that the exchange rate does matter when it comes to setting monetary policy.
The Pound Sterling firmed up to $1.3024 before paring some gains. It was last seen hovering around $1.3005, netting a modest gain.
The Yen was weaker at 106.16 a dollar, compared to 106.04 a dollar Tuesday evening.
The Aussie was stronger by nearly 1% at US$0.7283, slightly off the day’s high of US$0.7283.
The Swiss franc firmed up to 0.9123 a dollar, gaining from 0.9178. Switzerland’s unemployment rate remained unchanged in August, coming in at a seasonally adjusted 3.4%, same as seen in July, data from the State Secretariat for Economic Affairs, or SECO, showed. This was in line with economists’ expectations.
On an unadjusted basis, the unemployment rate rose marginally to 3.3% in August, as expected, from 3.2% in July.
The Loonie was up nearly 0.7% at 1.3148 a dollar, regaining ground after being down at 1.3259 earlier in the day. Crude oil futures, which had tumbled nearly 8% on Tuesday, recovered well to regain some lost ground. WTI Crude futures for October settled higher by about 3.5% today.