The dollar weakened against its peers today as the market took profits after the greenback hit its recent 3 month high although was still underpinned by predictions of a Fed rate increase coming soon. Thin volume was traded with no significant economic data releases due out of the US today. Federal Reserve Chair announced last week that the FOMC will in all likelihood increase its key interest rate “at some point this year”. The US dollar index had declined 0.62% trading at 97.54 coming off its 3 month high of 98.31 hit on Monday.
The euro strengthened against the dollar with the pair up 0.84% trading at 1.0913 coming off its 3 month low of 1.0812 reached earlier in the session. Following the reopening of Greek banks on Monday after being made to close for 3 weeks although daily cash withdrawal limits of 60 euros remained in place, the euro managed to garner some support. Greece is no longer in debt to the International Monetary Fund after having repaid on Monday roughly 2 billion euros owed. The IMF is now in a position to help Greece restore its financial stability.
The pound weakened against the dollar with the pair down 0.10% trading at 1.5549. The UK Office for National Statistics released data which revealed that public sector net borrowing increased from 8.35 billion pounds in May to 8.58 billion in June. Experts had forecast an increase to 8.60 billion pounds.
The Swiss franc strengthened against the dollar with the pair dropping 0.74% trading at 0.9574. The franc was supported on the back of data released by the Swiss Federal Statistical Office which revealed that the country’s trade surplus grew from CHF 3.41 billion in May to CHF 3.58 billion in June. Experts had forecast the trade surplus to decrease to CHF 2.78 billion.
The yen strengthened against the dollar with the pair declining 0.20% trading at 124.02 coming off its high of 124.48 reached earlier in the session as the market took profit on the dollar. The dollar had been supported earlier in the session at its more than 1 month high against the yen as positive developments in Greece lowered safe haven demand for the yen alongside talk of a Fed rate increase.
The Australian, New Zealand and Canadian dollars strengthened against the greenback. The Aussie gained 0.81% against the greenback with the pair trading at 0.7432 coming off its 6 year low of 0.7325 hit in the previous session. The kiwi surged 1.09% against the dollar with the pair trading at 0.6636. The Reserve Bank of Australia released its latest policy meeting minutes which indicate that the central bank does not see itself in a position as a result of the state of its economy to either lower rates due to poor economic growth or to increase rates due to economic strength. The loonie advanced 0.47% against the dollar with the pair trading at 1.2931 coming off its 6 year high of 1.3027 hit on Monday.
Disclaimer: This information has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information.