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Dollar little changed at 3-month highs in subdued trade

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Investing.com -

Investing.com - The dollar was little changed against a basket of other major currencies in subdued trade on Monday, hovering at three-month highs as expectations for a U.S. rate hike in the near future continued to lend broad support to the greenback.

Demand for the dollar remained supported after upbeat data on Friday fuelled further expectations for a U.S. rate hike in the near future.

Data on Friday showed that the U.S. consumer price index rose 0.3% in June, while consumer prices ticked up by 0.1% last month on a yearly basis.

A separate report showed that U.S. housing starts rose 9.8% to 1.174 million units in June, compared to expectations for an increase of 6.2%.

U.S. building permits rose 7.4% to 1.343 million units last month, confounding expectations for a 11.8% drop.

The data came after Federal Reserve Chair Janet Yellen said, in testimony before the House Financial Services committee, that the Fed is likely to raise rates "at some point this year." She added that the U.S. labor market healthier but "still some slack."

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was steady at 98.11, the highest level since April 23.

EUR/USD held steady at 1.0833 as Greek banks reopened on Monday after a forced 3-week closure but restrictions on cash withdrawals were to remain. In a decree Saturday, the Greek government kept the daily cash withdrawal limit at €60 but added a weekly limit of €420.

The decree came on the same day as Greece's coalition government swore in its new, reshuffled cabinet. Five prominent dissidents from the Syriza party, the senior coalition party, were replaced.

On Friday, German lawmakers voted in favour of opening discussions on Greece's third bailout and the European Union decided to release a short-term loan of €7.16 billion to help Greece pay back a loan due Monday to the European Central Bank.

The Greek Parliament was scheduled to vote on further austerity measures on Wednesday.

The pound edged lower, with GBP/USD down 0.24% at 1.5564.

Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.17% to one-month highs of 124.26 and with USD/CHF adding 0.19% to 0.9633.

The Australian dollar was steady, with AUD/USD at 0.7377, while NZD/USD gained 0.89% to 0.6579, pulling further away from the previous week's six-year lows of 0.6498

USD/CAD edged up 0.17% to trade at six-year highs of 1.2994.

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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.


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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