The dollar was generally stronger Monday, staying near last week’s 4-year peak versus a basket of major rivals.
Safe haven currencies such as the dollar were lifted by renewed conflict between Russia and the Ukraine, as well as lingering concerns about the global economy.
Meanwhile, Russia’s central bank on Monday allowed the ruble to float freely, after it fell heavily in recent weeks, and cut the country’s economic growth forecasts on the premise that the Western sanctions would remain until the end of 2017.
The dollar rose to $1.2420 versus the euro, having touched a more than 2-year peak of $1.2360 late last week.
Eurozone investor confidence rose for the first time since July, but the data did little to soothe worries about the region’s outlook.
Survey figures from the think-tank Sentix showed the investor sentiment index rose to -11.9 in November from a 17-month low of -13.7 score seen in October.
The dollar also firmed against the yen, testing last week’s 7-year peak near Y115 before leveling off.
A steady advance helped the dollar build on recent gains versus the sterling, with the pair moving to $1.5850. That’s not far from last week’s yearly high around $1.5790.
Chinese inflation remained unchanged near a 5-year low in October and exports grew at a slower pace from last year, reinforcing signs of a weak economic activity.
Inflation held steady at 1.6 percent in October, which was the lowest rate seen since January 2010, the National Bureau of Statistics reported Monday. The rate also matched economists’ expectations.
The material has been provided by InstaForex Company – www.instaforex.com