The dollar was mixed Monday, holding near recent 4-year highs as measured against a basket of major rivals.
Upbeat econonmic news from Germany weighed on the dollar versus the euro, but the greenback edged toward fresh 7-year highs against the slumping yen.
German business confidence improved unexpectedly in November reversing last month’s decline, as the economy returned to growth avoiding a recession.
The business confidence index rose for the first time in seven months to 104.7 in November from 103.2 in October, which was the lowest since December 2012, a survey conducted among 7,000 executives by the Ifo institute showed Monday.
Still, the euro’s gains were subdued as few analysts expect the German data will keep the European Central Bank from offering further stimulus hinted at by ECB President Mario Draghi Friday.
The dollar eased to $1.2450 after testing a 2-year peak near $1.2350 against the euro.
Early losses took the dollar from a yearly peak against the sterling, with the pair settling near $1.57 by mid-day.
The buck rose to Y118.35 versus the yen, not far from last week’s 7-year peak near Y119. The Bank of Japan surprisingly offered increased monetary stimulus last week, accelerating the yen’s recent losses. The Japanese markets were closed for a holiday today.
The material has been provided by InstaForex Company – www.instaforex.com