Dol­lar holds steady

Kuwait Times - - BUSINESS -

NEW YORK:

The dol­lar held steady yesterday, lin­ger­ing about half a per­cent be­low a 14-year peak set ear­lier this week, as traders moved to the side­lines ahead of the Christ­mas hol­i­day week­end. The green­back will likely test fresh multi-year heights when in­vestors re­turn from their year-end hol­i­day break. The dol­lar has ral­lied more than 5 per­cent against a bas­ket of cur­ren­cies since Don­ald Trump’s sur­prise US pres­i­den­tial elec­tion win on Nov 8.

“No one wants to take ad­di­tional risk be­tween now and the end of the year. They don’t want to jeop­ar­dize those gains,” said Stan Ship­ley, strate­gist at Ever­core ISI in New York. Traders brushed off up­beat US new home sales and con­sumer sen­ti­ment data, which re­in­forced the view the world’s big­gest econ­omy is ex­pand­ing faster than its Euro­pean and Ja­panese coun­ter­parts. Bets that Trump’s eco­nomic poli­cies would pro­mote faster US growth and in­fla­tion have fed ap­petite for the dol­lar, stocks and cor­po­rate bonds and stoked sell­ing in the yen, gold and US Trea­suries.

Fed­eral Re­serve’s hint that it might raise US in­ter­est rates at a faster pace in 2017, to­gether with Euro­pean Cen­tral Bank and Bank of Ja­pan main­tain­ing their ul­tra-loose pol­icy stance, have fur­ther bol­stered the dol­lar in re­cent days. The dol­lar in­dex was marginally firmer at 103.14, re­cov­er­ing from an ear­lier low of 102.89. It was not far from the 14-year peak of 103.65 reached on Tues­day. — Reuters

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.