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Markets

Dollar edges higher but gains seen limited

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Investing.com - " The dollar pushed higher against the other main currencies on Monday, but remained close to recent lows as expectations that the Federal Reserve will delay plans to reduce its stimulus program until well into next year continued to weigh.

The dollar gained ground against the yen during U.S. morning trade, with USD/JPY rising 0.31% to 97.70.

The dollar found support after data showed that U.S. industrial production rose by a seasonally adjusted 0.6% last month, above expectations for a 0.4% rise and the fastest increase in seven months.

A separate report showed that U.S. pending home sales fell 5.6% in September, down for the fourth consecutive month.

The euro pulled back from Friday's 23-month highs against the dollar, with EUR/USD sliding 0.13% to 1.3786.

Investors remained cautious ahead of the Fed's upcoming policy meeting later in the week amid expectations that the central bank will maintain the current pace of its asset purchase program into the first quarter of next year, to safeguard the U.S. economic recovery in the wake of the recent 16-day government shutdown.

The dollar was higher against the traditional safe haven Swiss franc, with USD/CHF up 0.32% to 0.8954.

The dollar also pushed higher against the pound, with GBP/USD losing 0.23% to trade at 1.6131.

In the U.K., Bank of England policymaker David Miles said Monday that raising interest rates before there was a "meaningful" reduction in the unemployment rate would be "pretty catastrophic".

Elsewhere, the greenback was higher against its Australian counterpart, with AUD/USD down 0.15% to 0.9569.

The greenback was almost unchanged against the New Zealand and Canadian dollars, with NZD/USD edging up 0.06% to 0.8283 and USD/CAD dipping 0.07% to 1.0444.

The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.18% to 79.41.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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