Dollar Dives to More Than 3-Month Lows Amid Sterling, Euro Pressure By Investing.com
Investing.com – The dollar fell sharply against a basket of major currencies weighed by a surge in the euro and sterling, while upbeat US economic data failed to lift sentiment.
The sharp rise in the euro weighed on the dollar overshadowing a duo of mostly update reports on inflation and retail sales.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.63% to 91.08.
The rallied against the greenback after Chancellor Angela Merkel struck a deal with the Social Democrat Party (SPD) on Friday, paving the way for government coalition talks, easing political uncertainty.
The Labor Department said on Friday its core rose 0.3% in December, edging up 0.2% in November. The uptick in consumer prices in year-on-year through December rose to 2.1%.
The Commerce Department said on Friday that retail sales rose that was below economists’ forecast for a 0.4% rise. While November’s retail sales reading was revised upward to 1.4% from 0.8%.
The upbeat inflation report would likely provide the Federal Reserve with the “ammo” to suggest that inflation is improving, Bank of Montreal said. While the weaker than expected retail sales data was downplayed as market participants focused on the large upward revision for November.
Also weighing on the dollar was a rally in against the greenback to $1.3687 amid reports that several EU member countries are open to the idea of a softer Brexit, easing worries the EU may adopt a tough stance on trade discussions with Britain.
fell 0.02% to Y111.25, while fell 0.06% to C$1.2512.
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