Latest News

Dollar slips as risk sentiment improves, Aussie outperforms

2/2 © Reuters. FILE PHOTO: A money changer counts U.S. dollar banknotes at a currency exchange office in Ankara, Turkey November 11, 2021. REUTERS/Cagla Gurdogan 2/2

By Karen Brettell

NEW YORK (Reuters) – The euro, Australian dollar and other currencies recovered against the U.S. dollar as traders turned more positive about the economic outlook on Wednesday, even as Omicron cases rocketed and investors braced for more volatility.

Risk appetite has improved since Monday, when markets were rattled by government restrictions relating to the spread of Omicron, and after U.S. Senator Joe Manchin said he would not support a new fiscal spending package.

“The dollar is softening as risk-off impulses continue to ebb,” analysts at Brown Brothers Harriman said in a report on Wednesday, adding that “we are likely in a consolidative period for now given the lack of any major new drivers.”

The dollar dipped 0.37% against a basket of currencies to 96.068.

The dollar index, however, remains near a 1-1/2-year high of 96.938 reached on Nov. 24, on expectations that the Federal Reserve is closer to raising rates.

Data on Wednesday showed that U.S. consumer confidence improved further in December, suggesting the economy would continue to expand in 2022 despite a resurgence in COVID-19 infections and reduced fiscal stimulus.

The euro gained 0.37% to $1.1331.

The risk sensitive Australian dollar gained 0.86% to $0.7214 and the kiwi rose 0.74% to $0.6820.

The greenback dipped 0.63% against the Norwegian crown to 8.8800. The Norwegian currency has benefited from rising oil and gas prices and has a positive seasonality for the weeks around Christmas.

Sterling gained 0.67% to $1.3358, despite data showing Britain’s economy grew more slowly than previously thought in the July-September period.

The weeks on either side of Christmas are typically low in volatility for currencies and other asset classes, analysts at ING said, though “this year some seasonal tendencies will be mixed with the Omicron variant threatening to force new restrictions and markets still processing a week full of key central bank decisions.”

Turkey’s lira steadied and held its recent gains after a rollercoaster ride in which it charged back from record lows due to President Tayyip Erdogan’s new steps to guard Turks’ savings against volatility.

Bitcoin was little changed on the day at $48,914.


Currency bid prices at 3:00PM (2000 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Dollar index 96.0680 96.4420 -0.37% 6.765% +96.6040 +96.0320

Euro/Dollar $1.1331 $1.1290 +0.37% -7.25% +$1.1343 +$1.1265

Dollar/Yen 114.1700 114.2000 -0.02% +10.54% +114.3650 +114.0050

Euro/Yen 129.37 128.77 +0.47% +1.93% +129.5000 +128.5700

Dollar/Swiss 0.9197 0.9237 -0.43% +3.96% +0.9252 +0.9197

Sterling/Dollar $1.3358 $1.3271 +0.67% -2.22% +$1.3362 +$1.3240

Dollar/Canadian 1.2843 1.2914 -0.55% +0.85% +1.2924 +1.2837

Aussie/Dollar $0.7214 $0.7154 +0.86% -6.21% +$0.7220 +$0.7121

Euro/Swiss 1.0419 1.0417 +0.02% -3.59% +1.0434 +1.0415

Euro/Sterling 0.8481 0.8507 -0.31% -5.10% +0.8513 +0.8481

NZ $0.6820 $0.6771 +0.74% -5.01% +$0.6821 +$0.6742


Dollar/Norway 8.8800 8.9410 -0.63% +3.47% +8.9710 +8.8745

Euro/Norway 10.0647 10.0842 -0.19% -3.84% +10.1135 +10.0356

Dollar/Sweden 9.0874 9.1293 -0.09% +10.87% +9.1606 +9.0785

Euro/Sweden 10.2980 10.3073 -0.09% +2.20% +10.3245 +10.2856

Dollar slips as risk sentiment improves, Aussie outperforms

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

You may also like

Leave a reply

Your email address will not be published.

More in Latest News