Dollar extends gains after Fed, euro and yen down
Currencies Direct December 20th 2013 - < 1 minute read
The dollar remained buoyant on Friday (December 20th),
supported by US Treasury yields after the Fed said it would reduce
the pace of its bond-buying programme.
USD/JPY touched on a new five-year high, rising to 104.47 as
markets shrugged off the Bank of Japan’s decision not to extend the
size of its monetary base.
Though standing pat on asset purchases, businesses expect the
bank to ease further in 2014, just as the Fed begins to
Meanwhile, the euro fell against the greenback after Standard
& Poor’s cut its long-term rating on the European Union.
“In our opinion, the overall creditworthiness of the now 28
European Union (EU) member states has declined,” S&P said
as it cut its supranational long-term rating to AA-plus from
EUR/USD was down 0.2 per cent at 1.3636, having earlier touched
on its lowest level since December 5th.
USD/CHF was also higher at 0.8995, a two-week peak, as the
growing risk appetite that is seeing global stocks soar dampens
demand for the safe haven Swiss franc.
The pound was steady against the greenback, with GBP/USD easing
to 1.6348. Sterling posted more gains on the euro. EUR/GBP was down
at 0.8339, its lowest since December 5th.
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