Month-end Dollar Buying Looks Weak
Dollar buying ahead of month-end portfolio rebalancing looks weak, Barclays analysts said in a note. The dollar has come off recent peaks as positive sentiment around the currency has faded, they said.
This has largely boosted the value of dollar-denominated assets outside the U.S. and increased the need to buy dollars at month-end for rebalancing. Outperformance of European equities relative to the U.S. and the appreciation of the Japanese yen against the dollar “contributed to a moderate dollar buying signal against both currencies at month-end,” they said.
The DXY dollar index fell 0.2% to 106.409 after hitting a two-and-a-half-month low of 106.126 overnight.
Source: Dow Jones Newswires
