Friday , July 30 2021

The dollar closes its best year of 2015 with a cautious tone

The dollar fell on Monday against the yen and the euro in a weak-ass session, as optimism about trade-offs between the United States and China reduced its attractiveness as a shelter, yet it had the best annual results of 2015

The dollar, which measures the greenback against six other currencies, gave 0.22% on Monday. During the year, the index increased by 4.4%, representing the highest percentage increase in three years.

"The US dollar is moving towards the end of the calendar year in a defensive, because global reserves – given that some markets closed the year – have increased after President Trump's positive comments on trade with the United States and China," said Sean Osborne, head of the Foreign Exchange Strategy in Scotiabank.

Global stock markets rose Monday, fueled by optimism caused by signs of progress in the trade dispute between Washington and Beijing, a tough year for stock.

The risk appetite improved slightly when US President Donald Trump said on Saturday that he has a "very good call" with Chinese counterpart Xi Jinping in which they discussed trade issues and added that the two sides have made "great progress".

The yen, which tends to benefit in times of geopolitical or financial tension, since Japan is the largest global creditor, maintained its appeal and the dollar reached a minimum of six months against the Japanese currency.

Although the dollar is relatively stable at the end of 2018, its high score, a weaker stock market boom, less repatriation from US companies, and the possibility that the Fed will not raise interest rates as many times as the proposed previously posed a challenge to the greenback

On Monday, the euro rose 0.08% against his US counterpart. Although the currency has moved against the dollar in recent weeks, the continental currency has lost about 5% in 2018 against the dollar.

The British pound, which this year was hit by fears for Brexit, rose 0.31% against the dollar at a three-week higher rate. The British currency lost about 6% of its value against the dollar this year.

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