Dollar falls to a fresh 3-month low against Euro

Dollar falls to a fresh 3-month low against Euro


The dollar fell back Wednesday against the euro to its lowest level since October, weakened by comments from officials of the US central bank and a renewed appetite for risk fueled by optimism on China-US negotiations.

The dollar index fell 0.81% to 95.12 points, while the euro jumped nearly 1% to $ 1.1522. The greenback fell sharply after the Fed Minutes showed that many central banks are in favor of a pause in monetary tightening. Another event that focused attention on Wednesday was the extension of China-US negotiations for half a day not planned in the initial program. Nothing has changed after the talks, but the markets have applauded this new attempt to settle the trade disputes of the two largest economies in the world. Meanwhile, the Chinese currency benefited from it: it finished 6.8160 yuan for one dollar, its highest level since August.

The Canadian dollar, for its part, strengthened slightly as the central bank of Canada announced on Wednesday that its main policy rate will remain at 1.75%, in line with market forecasts.

On the Brexit front, British MPs forced the government to submit in three days an alternative plan in case of rejection of the exit agreement negotiated with Brussels. The vote is scheduled for January 15.

On Wednesday, the British pound fell against the euro and rose against the dollar: it was worth 90.22 pence for one euro against 89.97 pence Tuesday night and 1.2798 dollar for a pound against 1.2717 the day before.

Among other currencies, the Japanese currency rose against the dollar to 108.28 yen but fell against the euro to 125.01 yen.

The Swiss franc rose against the greenback at 0.9750 Swiss francs but fell against the European currency, 1.1256 Swiss francs for one euro.

Oil prices rose sharply after a new confirmation from Saudi Arabia that the country is continuing its efforts to bring the oil market more in balance. A barrel of American oil became 5 percent more expensive at 52.26 dollars. Brent oil rose 4.5 percent in price and cost $61.37 per barrel.

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