Dollar moves lower but remains supported ahead of Fed

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Investing.com – The dollar moved lower against the other major currencies on Friday, but still remained broadly supported ahead of the Federal Reserve highly-anticipated policy meeting next week.

slid 0.37% to 121.12.

Demand for the dollar continued to be underpinned by expectations that the Fed is on track to raise interest rates for the first time since 2006 at its upcoming meeting on December 15-16.

Higher interest rates would make the dollar more attractive to yield-seeking investors.

The University of Michigan reported on Friday that its rose to 91.8 in November from 91.3 the previous month. Analysts had expected the index to rise to 92.0 last month.

The report came shortly after data showed that rose 0.2% in November, compared to expectations for a 0.3% gain, after a 0.1% uptick the previous month.

, which exclude automobiles, increased by 0.4% last month, beating expectations for a 0.3% rise.

A separate report showed that rose 0.3% in November, compared to a 0.1% fall.

, which exclude food and energy, gained 0.3% in November, exceeding expectations for a 0.1% uptick.

rose 0.38% to 1.0982.

Elsewhere, the dollar turned lower against the pound and the Swiss franc, with up 0.37% at 1.5214 and with declining 0.40% to 0.9838.

The Australian and New Zealand dollars were weaker, with down 0.93% at 0.7213 and with retreating 0.49% to 0.6724.

Meanwhile, climbed 0.52% to trade at fresh 11-1/2 year highs of 1.3695.

The commodity-related loonie remained under selling pressure amid an ongoing rout in oil prices. for January delivery were down 1.82% at a seven-year low of $36.09 a barrel in U.S. morning trading.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.28% at 97.64.



by Investing