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Dollar steady near 11-month lows vs. euro, yen weaker

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Investing.com - The U.S. dollar remained close to 11 month lows against the euro on Monday, as demand for the single currency was boosted by hopes that the worst of the crisis in the euro zone has passed, while the greenback was near two-and-a-half-year highs against the yen.

During European afternoon trade, the greenback steady against the euro, with EUR/USD inching up 0.05% to 1.3349.

Demand for the single currency continued to be underpinned after European Central Bank President Mario Draghi said last week that a gradual recovery in the euro zone economy would begin this year.

The euro eased back from session highs after official data showed that industrial production in the region fell 0.3% in November, down for the third consecutive month, compared to expectations for a 0.1% increase.

The dollar was hovering close to two-and-a-half year highs against the yen, with USD/JPY up 0.15% to 89.31.

Expectations for more aggressive easing measures by the Bank of Japan continued to weigh on the yen after Japanese Prime Minister Shinzo Abe called Sunday for the central bank to adopt a 2% targeted inflation rate.

The greenback pushed higher against the pound and the Swiss franc, with GBP/USD down 0.46% to 1.6058 and USD/CHF rising 0.41% to 0.9171.

The pound weakened broadly as pressure on the government to renegotiate the terms of its European Union membership mounted, while a recent string of weak economic data fuelled concerns that the U.K. economy slid back into a recession in the fourth quarter.

The greenback was broadly weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging up 0.09% to 0.9858, AUD/USD up 0.29% to 1.0567 and NZD/USD rising 0.62% to 0.8416.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched up 0.03% to 79.64.

Investors were looking ahead to a speech by Federal Reserve Chairman Ben Bernanke about monetary policy later in the trading day, amid speculation that the Fed chief would quash speculation over an earlier-than-expected end to the central bank's quantitative easing program.

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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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