The dollar, on Tuesday, November 29, slumped after rising across the board and gaining more than 1.2 percent against the safe-haven Japanese yen following the release of stronger-than-expected U.S. third-quarter gross domestic product numbers.
The Greenback consolidated its position against most major currencies following a roller-coaster 24 hours which traders say may just be a precursor to three weeks of risk-packed events including the Federal Reserve’s December policy meeting.
Even a reading on U.S. consumer confidence that showed the index at its highest level since July 2007 did not dissuade investors from selling the greenback as North American trading picked up steam.
“Some people do trade off of headlines, but why should we react to what happened in the period ending in September when instead we’re looking forward to what will happen next month?” said Marc Chandler, chief global currency strategist at Brown Brothers Harriman & Co. “The markets are anticipatory in nature.”
The dollar index, which tracks the greenback against a basket of six major rivals, scaled to a nearly 14-year peak of 102.050 .
DXY on Thursday before profit-taking and oil price jitters brought it back down to earth. It has continued to move lower this week, but has remained in a tight range.
It was last down 0.15 percent to 101.160. The dollar was last up 0.8 percent against the yen at 112.82 yen JPY=. The euro EUR= was flat against the dollar at $1.0618.
