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Dollar Rises Against Peers

Dollar Rises Against Peers

The U.S. dollar firmed up against its peers on Monday as fading optimism about a stimulus deal, and worries about growth amid record spikes in coronavirus cases across the globe boosted the currency’s safe-haven appeal.

Data released by the Commerce Department showed new home sales in the U.S. unexpectedly fell in the month of September. The report said new home sales tumbled by 3.5% to an annual rate of 959,000 in September after jumping by 3% to a revised rate of 994,000 in August. The pullback surprised economists, who had expected new home sales to surge up by 2.8%.

The dollar index, which advanced to 93.11, was last seen at 93.06, up 0.32% from previous close.

Against the Euro, the dollar was up nearly 0.5% at $1.1808 after firming up to $1.1803 earlier. German business sentiment weakened in October, survey data from ifo Institute showed today. The business climate index fell to 92.7 in October from revised 93.2 in September.

The reading was below economists’ forecast of 93.0. Assessment of current situation improved, while expectations deteriorated in the month.

The Pound Sterling was fetching $1.3023 a unit, about 0.15% less than Friday’s close of $1.3042.

The Yen was down marginally at 104.84 a dollar, after recovering from 105.05 a dollar it touched early on in the day. Japan’s services producer price inflation accelerated to a six-month high in September, data from Bank of Japan showed on Monday.

The services Producer Price index advanced 1.3% year-on-year in September, following a 1.1% rise in August. This was the fastest increase since March when prices gained 1.4%.

The Aussie was weak with the AUD-USD pair at 0.7123 in late afternoon trades on Monday, compared to its close of 0.7139 last week.

The Swiss franc was weaker at 0.9078 a dollar, compared to previous close of 0.9044, while the Loonie was weak at 1.3213 a unit of greenback, losing ground from 1.3125 a unit on Friday.

The material has been provided by InstaForex Company – www.instaforex.com