Dollar maintains at 9-month high

14.11.2016

On Monday, the dollar reduces growth, but is still traded at nine-month highs against other major currencies as optimism regarding the US economy during the presidency of Trump continues to support the demand for the US currency.

EUR/USD fell 0.66% to 1.0782, the highest since January.

The dollar rose on hopes that the increase in budget spending and tax cuts during the Trump administration can accelerate economic growth and inflation.

The expectations of an increase in interest rates in the US have not changed amid optimism that faster economic growth would allow the Fed to increase borrowing costs.

The Mexican peso remained under pressure: MXN/USD pair fell 0.42% to 0.0479, keeping at a record low of 0.0467 reached on Friday.

At a press conference last Wednesday, the leadership of the Mexican central bank said that it is watching the market volatility, but stays refrained from any national currency stabilization measures.

GBP/USD fell 0.33% to 1.2556, falling from a five-week high on Friday at 1.2675.

USD/JPY pair rose 1.03% to 107.78, the highest since June 7, while USD/CHF rose 0.88% to 0.9967.

Earlier, Japanese data showed that the economy grew in the third quarter faster than expected, with GDP growth of 2.2% in annual terms. However, the report also indicates that domestic demand remains weak.

The Australian dollar rose: AUD/USD pair rose 0.20% to 0.7556, while the NZD/USD pair fell 0.22% to 0.7099.

USD/CAD fell 0.11% to 1.3527 after rising to a nine-month high at 1.3588 early in the day. Meanwhile, the Canadian dollar remained under pressure as oil prices continue to fall on Monday amid growing concerns over the glut of world reserves.

The USD index, which shows the relationship of the US dollar against a basket of major currencies, rose 0.64% to a nine-month high at 99.62, near an 11-month high at 100.03, reached earlier in the session.

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