Dollar falls to lowest level in almost 3 months as investors flock to risk
News
By
Reuters
| Nov 29, 2020
The dollar has fallen more than two per cent so far this month after Democratic US President-elect Joe Biden's election victory and positive Covid-19 vaccine progress, which has reduced demand for safe-havens.
New Zealand's dollar hit its highest level in more than three years, while the Australian dollar scaled September levels after data showed October profits at China's industrial firms grew at their quickest pace since early 2017. The British pound declined against the euro as the European Union and Britain said substantial differences remained over a Brexit trade deal.
This is as the EU chief negotiator prepared to travel to London in a last-ditch attempt to avoid a tumultuous finale to the five-year Brexit crisis.
READ MORE
Forget miraa: Discovery of minerals stirs up Meru locals
Kenyan retailers ready to pounce as Ethiopia to open up market
Hiring civil servants on contract will fuel corruption, experts say
KQ suspends flights to Kinshasa over detention of staff
Sugarcane farmers blame woes on Agriculture and Food Authority
Absa Life Assurance earnings jump 84pc to Sh667 million
Ruto pushes rich nations to boost funding for poor States
Counties sitting on Sh1b emergency fund amid raging floods
Poultry players protest US import deal plan
Uptake of AI-powered home solutions low despite many benefits
Along with the data and Brexit headlines, Erik Bregar, head of FX strategy at Exchange Bank of Canada in Toronto, cited month-end selling of the US dollar as investors balance portfolios after solid monthly gains for equities.
"There's been talk all week that the US dollar will see waves of selling going into Monday," said Bregar who also noted, "dollar selling into the London fix every day this week."
With US traders still on vacation a day after Thursday's Thanksgiving holiday, Bipan Rai, North America head of FX Strategy at CIBC Capital Markets, said thinner trading volume was likely exaggerating dollar move.
"It started with the impressive industrial profits data in China and that's translating into what is a very patchy backdrop for liquidity in the North American time zone," said Rai.
However, "over the longer term, this is probably the right trend for the dollar".
- Wetangula allows motion to impeach CS Linturi
- Ex-Murang'a governor, two others in court over Sh351m county scam
- Forget miraa: Discovery of minerals stirs up Meru locals
- Hiring civil servants on contract will fuel corruption, experts say
- Kenyan retailers ready to pounce as Ethiopia to open up market