Dollar steady after recent rally

Published: 13 Nov at 6 AM Tags: Euro, Dollar,

The dollar is steady after its recent rally against the euro and the yen. Analysts are now waiting for US and Chinese economic data to be released. The greenback is trading at 115.56 yen after hitting a seven-year high of 116.11. The Japanese currency has managed to stabilise after Yoshihide Suga, the government’s leading spokesman, said Prime Minister Shinzo Abe is unlikely to hold an election in December.

Talks of an election fanned hopes that Japan’s leader could use a victory to introduce new reflationary measures and delay a sales tax hike. The focus is now on Chinese data due out later today.

China is Australia’s biggest trading partner. The Aussie dollar is down 0.3 per cent to $0.8695 following an announcement by Christopher Kent, Assistant Governor at the Reserve Bank of Australia, said intervention on the currency was still on the table. So far this year the Aussie has lost 2.5 per cent against the dollar.

The US dollar could be further supported if jobless figures and US retail sales data released on Friday is positive.

The euro remains steady at $1.2442 following last week’s two-year low of $1.2358. Sterling is down 0.9 per cent to a 14-month trough of $1.5760 after Bank of England boss Mark Carney said easier monetary condition could be introduced.