U.S. Dollar Recovers Slightly on Favorable U.S. Monetary Policy View
The U.S. dollar recovered against a basket of major currencies on Thursday on the view that Wednesday’s selloff was overdone given the relative strength of the U.S. economy and the Federal Reserve’s commitment to tightening U.S. monetary policy.
A disappointing auction of Spanish debt and data showing deflation hit five peripheral euro zone countries in September underscored the relative health of the U.S. economy and the divergence between the Fed’s path toward hiking interest rates and the European Central Bank’s potential to further loosen monetary policy.
The dollar gained traction after hitting a three-week low against the euro and the Swiss franc Wednesday and a more than one-month low against the safe-haven yen.
The euro was last down 0.72 percent against the dollar at $1.2745 after hitting a high of $1.2885 Wednesday. The euro hit an 11-month low against the yen of 134.16 yen.
The dollar was last up 0.06 percent against the yen at 105.96 yen after hitting a low of 105.21 Wednesday.
The dollar was last up 0.68 percent against the Swiss franc at 0.9463 franc after hitting a three-week low of 0.9361 on Wednesday. The dollar index, which measures the greenback against a basket of six major currencies, was last down 0.07 percent at 85.085.
U.S. stocks fell again, with the S&P 500 stock index last down 0.61 percent, while Treasuries yields rose.
Source: CNBC- U.S. Dollar Recovers Slightly on Favorable U.S. Monetary Policy View
