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Dollar makes poor start to 2010
LONDON - The dollar slid on Monday against the euro and yen, making a weak start to 2010, as traders took profits and awaited key US data for fresh direction, dealers said.
- PUBLISHED: Mon 4 Jan 2010, 6:45 PM UPDATED: Mon 6 Apr 2015, 4:45 AM
- By:
- AFP
In London morning deals, the European single currency firmed to 1.4389 dollars from 1.4323 dollars in New York late on Thursday, before the New Year holiday weekend.
Against the Japanese currency on Monday, the US unit slid to 92.82 yen, from 93.00 on Thursday.
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The greenback had ended 2009 on an upbeat note in the wake of government data indicating that new US claims for jobless benefits fell to the lowest level since July 2008.
Later Monday, dealers will digest US manufacturing data from the Institute for Supply Management (ISM). Further ahead, crucial non-farm payrolls data is slated for publication on Friday.
“Today we will see the publication of December's ISM index for the manufacturing sector, which is likely to display a moderate rise thus supporting the dollar,” said Commerzbank analyst Antje Praefcke.
“Market attention will however concentrate on November's labour market report on Friday.
“Should this provide a negative surprise the dollar is likely to come under increasing pressure. Today markets are likely to be relatively calm though, with euro/dollar losing some ground if the ISM index is strong.”
In the meantime, the euro garnered some support from the latest newsflow in the eurozone.
Manufacturing activity across the eurozone expanded in December but at a slower pace than initially detected and with the shadow of price pressures building, a survey showed.
The 16-nation euro currency bloc's purchasing managers' index (PMI) for the manufacturing sector, published by data and research group Markit, rose to 51.6 points in December, from 51.2 points in November.
It was the third month running in which the widely-watched reading has been above the crucial 50.0 boom-or-bust line, but the readings were uneven.
The dollar also softened on Monday against the yen after Japanese exporters sold the greenback to settle their accounts after the holiday break, Shinkin Central Bank senior dealer Shinichi Hayashi told Dow Jones Newswires.
In London, the euro was changing hands at 1.4389 dollars against 1.4323 dollars late on Thursday, 133.56 yen (133.26), 0.8872 pounds (0.8862) and 1.4875 Swiss francs (1.4831).
The dollar stood at 92.82 yen (93.00) and 1.0338 Swiss francs (1.0341).
The pound was at 1.6219 dollars (1.6168).
On the London Bullion Market, the price of gold rose to 1,114.53 dollars an ounce from 1,104 dollars on Thursday.
