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Dollar holds steady vs. rivals, U.S. data ahead

Published 01/12/2015, 12:15 am
Updated 01/12/2015, 12:30 am
© Reuters.  Dollar little changed at 8-month highs vs. other majors
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Investing.com - The dollar held steady at eight-month highs against the other major currencies on Monday, as investors eyed the release of U.S. data later in the day amid mounting hopes for a December rate hike by the Federal Reserve.

USD/JPY rose 0.24% to 123.09.

The dollar remained supported after a string of upbeat U.S. data released over the week added to expectations that the Federal Reserve will raise interest rates next month.

Meanwhile, the yen came under pressure after data on Monday showed that Japan's industrial production rose 1.4% in October, disappointing expectations for an increase of 1.9%, after a 1.1% gain the previous month.

EUR/USD slipped 0.10% to fresh seven-month lows of 1.0582.

Sentiment on the euro remained vulnerable as European Central Bank President Mario Draghi has been signaling in recent weeks that the bank is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing.

Earlier Monday, data showed that German retail sales fell 0.4% in October, compared to expectations for a 0.4% rise and after a flat reading the previous month.

In addition, preliminary report showed that German consumer prices rose 0.1% in November, in line with expectations, after a flat reading in October.

Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.08% at a seven-month trough of 1.5016 and with USD/CHF adding 0.11% to 1.0303.

Official data earlier showed that U.K. net lending to individuals rose by £4.8 billion in October, in line with expectations and after a £4.9 billion increase the previous month.

In Switzerland, data showed that the KOF Economic Barometer slipped to 97.9 this month from 100.4 in October, whose figure was revised from a previously estimated reading of 99.8. Analysts had expected the index to hit 100.2 in November.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.30% at 0.7211 and with NZD/USD gaining 0.49% to 0.6565.

The kiwi strengthened after data on Monday showed that the ANZ business confidence index for New Zealand rose to 14.6 in November from 10.5 the previous month. Analysts had expected the index to climb to 15.0 this month.

Meanwhile, USD/CAD held steady at 1.3368, near last week's two-month high of 1.3437

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.16% at an eight-month peak of 100.22.

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