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Dollar hovers at 8-month peak on mounting rate hike hopes

Published 30/11/2015, 10:00 pm
© Reuters.  Dollar remains at 8-month highs vs. rivals with eyes on Fed
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Investing.com - The dollar hovered at eight-month highs against the other major currencies on Monday, as mounting hopes for a December rate hike by the Federal Reserve continued to boost demand for the greenback.

USD/JPY added 0.17% to 123.00.

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 0.14% to fresh seven-month lows of 1.0579.

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.

Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.08% at a seven-month trough of 1.5018 and with USD/CHF adding 0.10% to 1.0302.

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 0.26% at 0.7207 and with NZD/USD gaining 0.35% to 0.6556.

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 1.3373, 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 0.18% at a fresh eight-month peak of 100.23.

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