Dollar drops in quiet holiday trading

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Dollar drops in quiet holiday trading

The American Dollar Index (DXY) measured against a basket of six major currencies on an average had edged lower in a holiday-thinned trading session on Wednesday, though the safe-haven Japanese Yen had tumbled to a fresh one-month low amid an unjustified investors’ frets over an upsurge in Omicron cases, as FX traders across the globe had rushed on to riskier assets while ditching out safe-haven assets.

In point of fact, in the day’s decline in US Dollar Index (DXY) appeared to have catalysed by an upscaled investors’ caution as several short-sellers would more likely to leave ‘buy’ positions for the greenback in a bid to coffer up year-end profits, suggested analysts.

Meanwhile, addressing to a plausible profit-taking sell-off breeze in FX market over coming days, a global head of FX at Jefferies, Brad Bechtel wrote in a client note, “In times like these we trade very technically as short-term jobbers try to eke out some final year-end gains.

FX flows have been on the lighter side of usual for a month end, corroborating the view that most of that flow happened last week or even sooner”.

Dollar drops as Aussie, Kiwi, euro, sterling all rise vs greenback

Citing statistics, in the day’s FX market wind-down, the US Dollar Index (DXY) measured against a basket of six major currencies on an average, fell 0.20 per cent to 95.93.

Nevertheless, the greenback was trading throughout the session in a tentative note against all major currencies but Japanese yen. In tandem, risk-sensitives loonies like of Australian Dollar edged 0.35 per cent higher to $0.7251, while the Kiwis ended 0.28 per cent higher to $0.6823.

Besides, commodity-linked loonies such as Canadian Dollar added 0.16 per cent to C$1.2794, while Japanese Yen had breached a fresh one-month low of 115.04 yen per Dollar against its American counterpart. Concomitantly, the bloc’s common currency euro rose 0.29 per cent to $1.1341, while British Pound gained 0.45 per cent to $1.3487 against its American peer.