Dollar Increases Against Other Major Currencies


On Monday, the greenback increased against other major currencies, as Friday’s upbeat U.S. data continued to support and as worries over sanctions against Deutsche Bank continued to ease.

EUR/USD eased 0.08 percent to 1.1230.

The dollar supported after the University of Michigan stated in a revised report on Friday that its consumer sentiment index reached 91.2 in September, increased from a prior estimate of 89.8 and beating expectations for a reading of 90.0.

Data also presented that the Chicago purchasing manager’s index increased to 54.2 this month from 51.5 the prior month, exceeding anticipations for a small increase to 52.0.

USD/JPY slightly changed at 101.39.

Temporarily, market sentiment developed following reports late last week that Deutsche Bank is approaching a deal to settle a mortgage-securities investigation by paying a $5.4 billion fine, it is lower than the Justice Department’s original offer of $14 billion.

GBP/USD fell 0.35% to trade at 1.2934.

Investors were looking forward to a report on U.K. manufacturing activity scheduled later in the day, for further signals on the strength of the economy post-Brexit.

The U.S. dollar index, which gauges the greenback’s strong point against a trade-weighted basket of six major currencies, increased 0.10% at 95.48, after reaching a more than one week peak of 95.89 on Friday.

On Additional News

On Monday, the yen weakened in Asia together with the Aussie as investors noted a slew of manufacturing PMIs regionally and the start of a week long holiday in China.

AUD/USD traded at 0.7649, down 0.13%, whereas USD/JPY changed hands at 101.49, increased 0.15%. GBP/USD was last quoted down 0.35% to 1.2933 as information of the U.K.’s objective to leave the European Union start to dribble out.

On Monday, Sterling hit seven week lows after Britain set a March deadline to start its exit from the EU, while the greenback firmed as concerns about Deutshe Bank receded and investors looked to this week’s U.S. jobs data.

British Prime Minister Theresa May stated that she would start the process for the UK to leave the European Union by the end of March.

Prime Minister May told the ruling Conservative party’s annual conference on Sunday that she was determined to move on with the process and win the “right deal”.

Sterling declines 0.4% at $1.2941 after it earlier reached $1.2902, its lowest level since Aug. 16.

Ahead of a monthly policy decision on Tuesday by the Reserve Bank of Australia, the Australian dollar inched down 0.2% to $0.7647.

Australia’s central bank is generally expected to hold its cash rate at a record low of 1.5%, a poll of 57 economists found on Friday, following a reduction in August and May.

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