Dollar Drops a Third Day as Holiday Volumes Thin
The dollar stayed under pressure, albeit in thin trading conditions, as many European markets were closed for the Christmas holidays.
The Bloomberg Dollar Spot Index falls 0.2%, hits lowest since Oct. 2, while the yield on 10-year Treasuries hovers around 4.16%.
Weekly jobless claims data due later Wednesday.
Spot and options volumes run well below recent averages; DTCC data show EUR/USD flows stay below 20% of average.
EUR/USD climbs 0.1% to 1.1808 before paring gains; one-week risk reversals rise to 38bps in favor of the euro.
The yen gains for a third day as traders remained on watch for signs of currency intervention following Tokyo’s warning against excessive moves.
USD/JPY drops 0.4% to 155.56 before halving losses; pair has been under pressure especially after Japanese Finance Minister Satsuki Katayama said the country has a “free hand” to take bold action against currency moves that are not in line with fundamentals.
Norwegian krone leads G-10 gains; EUR/NOK down 0.4% to 11.7873, lowest since Dec. 10.
EUR/SEK slips 0.3% to 10.7880, lowest since April 3.
Source : Bloomberg.com
