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Dollar remains moderately higher in quiet trade

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Investing.com -

Investing.com - The dollar remained moderately higher against the other major currencies in quiet trade on Monday, as markets turned their attention to the Federal Reserve's policy meeting this week amid mounting expectations for a rate hike.

USD/JPY slid 0.27% to 120.65.

Most investors expect the Fed to raise interest rates for the first time since June 2006 at its upcoming meeting on December 15-16.

Higher interest rates would make the U.S. dollar more attractive to yield-seeking investors.

EUR/USD edged down 0.10% to 1.0982.

Data earlier showed that euro zone industrial production rose 0.6% in October, beating expectations for a 0.3% gain, after a 0.3% fall the previous month.

Elsewhere, the dollar was higher against the pound, with GBP/USD down 0.59% at 1.5126 but turned lower against the Swiss franc, with USD/CHF shedding 0.20% to 0.9810.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.35% at 0.7215 and with NZD/USD gaining 0.64% to 0.6757.

Also Monday, China's yuan opened at fresh four-and-a-half year lows after the People's Bank of China set its yuan midpoint rate at the lowest level since 2011.

The move came after the PBOC indicated Friday that it may ease its loose peg to the dollar and allow the yuan track a broad basket of currencies of China's trading partners.

Such a move would reduce China's demand for dollars.

Meanwhile, USD/CAD held steady at a fresh 11-1/2 year high of 1.3760.

The commodity-related loonie remained under broad selling pressure after oil prices fell to the lowest levels since early 2009 on Friday amid expectations that a global supply glut will worsen next year.

Falling oil prices have sparked renewed concerns over the health of the global economy and weighed on global inflation.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.21% at 97.81.

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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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