And analysts anticipate that, with many operators away for vacation, andVolumes are likely to remain subdued into the New Year.
The recent dollar weakness -the index is about to record a second consecutive month of losses- has been spurred by the markets, which anticipate rate cuts next yearwhich has diminished the attractiveness of the US currency.
Thus, the dollar indexwhich compares the greenback with a basket of six prominent currencies, drops to 101.41 units, its lowest level since July 28 and is heading for a fall of 1.9% in 2023, after two consecutive years of strong increases.
The euro, the yen and other currencies
For its part, the euro gains 0.1%, au$s1.1053, after hitting a four-month high of $1.1055. The single currency has risen almost 3% this year and is on track to record its third consecutive month of growth, matching last year’s streak.
He yen gives up 0.1%, to 142.52 units per dollaron track for an 8% decline for the year, although the Asian currency has seen a rebound in recent weeks reflecting expectations that the Bank of Japan will soon abandon its ultra-loose policy.
And the Australian and New Zealand dollars hit new highs five months earlier in the session. In its latest price, the “aussie” trades at $0.6836, while the “kiwi” stands at $0.6324.
What’s next for currencies
“Overall, from a global perspective, I hope the markets remain calm“said Jens Magnusson, chief economist at SEB, who assured that “we continue to have strong equity markets and this is likely to continue until the New Year.”
For the analyst, if no unexpected geopolitical event occurs, currency markets will remain fairly calm in the coming days.
Source: Ambito
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