Stocks

Dollar strengthens as U.S. stocks rebound off lows

Reuters

By Karen Brettell

NEW YORK, Dec 26 () - The dollar gained against a basket of other currencies on Wednesday as U.S. stocks came off 20-month lows, though uncertainty relating to the U.S. government shutdown and Federal Reserve monetary policy remained a headwind for the greenback.

U.S. stocks gained more than 2 percent as a rebound in technology shares and a jump in retailers led by Amazon.com put the market on pace to snap a four-session losing streak.

"That said, trading conditions remain light and investors remain somewhat cautious, watching closely for more U.S. political headlines," Bennenbroek said.

On Tuesday, U.S. President Donald Trump said the partial shutdown of the federal government was going to last until his demand for funds to build a wall on the U.S.-Mexico border is met.

Trump also repeated his criticism that the Fed has raised interest rates too quickly. The dollar has been hit in recent weeks by investor fears that rate increases will hurt the U.S. economy as international growth sputters.

"There's an endless laundry list of concerns: Trump berating the Fed, Trade Wars, China slowing growth, Brexit casualties, EU slowdown. But when you factor in a downturn in the U.S. economy, this is when things get ugly," Stephen Innes, head of trading APAC at Oanda in Singapore, said in a note.

The dollar index against a basket of six other major currencies gained 0.43 percent to 96.967. It was down from a 1-1/2-year high of 97.711 on Dec. 14.

In an apparent attempt to calm Wall Street nerves frayed by Trump's criticism of the Fed, a White House official said on Wednesday that Fed Chairman Jerome Powell faces no risk of losing his job and President Donald Trump is happy with his Treasury secretary, Steven Mnuchin.

Liquidity was thin after major markets were closed on Tuesday for the Christmas holiday. Markets in Britain, Germany and France remained closed on Wednesday.

========================================================

Currency bid prices at 1351 EST (1851 GMT):

Description RIC Last U.S. Close Previous Session Pct Change YTD Pct Change High Bid Low Bid
Euro/Dollar EUR= $1.1363 $1.1361 +0.02 -5.29 +1.1421 +1.1351
Dollar/Yen JPY= 110.8900 110.2700 +0.56 -1.58 +111.0000 +110.1500
Euro/Yen EURJPY= 126.02 125.67 +0.28 -6.78 +126.2400 +125.6600
Dollar/Swiss CHF= 0.9938 0.9836 +1.04 +2.00 +0.9947 +0.9853
Sterling/Dollar GBP= 1.2641 1.2684 -0.34 -6.45 +1.2719 +1.2637
Dollar/Canadian CAD= 1.3587 1.3588 -0.01 +8.03 +1.3617 +1.3573
Australian/Dollar AUD= 0.7058 0.7037 +0.30 -9.52 +0.7070 +0.7033
Euro/Swiss EURCHF= 1.1295 1.1257 +0.34 -3.37 +1.1308 +1.1246
Euro/Sterling EURGBP= 0.8987 0.8980 +0.08 +1.17 +0.9008 +0.8968
NZ Dollar/Dollar NZD= 0.6721 0.6724 -0.04 -5.15 +0.6745 +0.6721
Dollar/Norway NOK= 8.7679 8.7699 -0.02 +6.83 +8.8246 +8.7372
Euro/Norway EURNOK= 9.9647 9.9771 -0.12 +1.18 +10.0476 +9.9597
Dollar/Sweden SEK= 9.0870 9.0533 +0.12 +10.79 +9.1047 +9.0404
Euro/Sweden EURSEK= 10.3279 10.3151 +0.12 +4.97 +10.3685 +10.3108


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

In This Story

AMZN

Other Topics

World Markets Politics

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More