Dollar continues to rise in calm trading

20.11.2015

On Friday, during quiet trading, the dollar showed an increase against world currencies, as hopes for a Fed rate hike in December continue to support the US currency.

USD/JPY was consistently traded at 122.84, holding to Wednesday’s three-month high at 123.69.

The dollar got support after the publication of minutes of the Fed October meeting, showing that the majority of board members are in favor of a rate hike in December.

"Despite the absence of a decision, it may be appropriate to initiate the process of normalization at the next meeting", - is said in the report.

EUR/USD fell 0.43% to 1.0687, once again approaching the six-month low of 1.0614.

The euro fell after European Central Bank President, Mario Draghi, reiterated that the central bank will take all necessary measures to achieve the inflation target of just below 2%.

The comments came a day after minutes of the October meeting of the ECB showed that downside risks of inflation in the Eurozone increased again.

Most of the Governing Council members endorsed the view that the downside risks of inflation have increased, and expects that the timing of achieving the target mark is likely to be revised once again.

The dollar rose against the pound and the Swiss franc, GBP/USD pair fell 0.29% to 1.5246 and the USD/CHF pair rose 0.19% to 1.0148.

On Friday, the UK Office for National Statistics reported that the government's net borrowing rose by 7.47 billion pounds in October, after increasing by 8.33 billion pounds in September, the figure being revised up from the previously forecast of 8.63 billion pounds.

Analysts had expected for the last month the volume of borrowings of the public sector will increase by 5.50 billion pounds.

The Australian dollar rose, AUD/USD rose 0.25% to 0.7211, while the NZD/USD pair fell 0.14% to 0.6557. Meanwhile, the USD/CAD pair rose 0.21% to 1.3310.

The USD index, which shows the dynamics of the US dollar against a basket of six major currencies, rose 0.27% to 99.35, once again approaching the seven-month high of 99.96.

Back Next suggested article