The Dollar Slips Against Other Currencies
Steady U.S. Business Activity Impact on the Dollar
The dollar weakened against a basket of currencies due to steady U.S. business activity in November. Private sector employment also declined, aligning with expectations for a fourth-quarter economic slowdown.
Quiet Trading Day After Thanksgiving
Currencies traded within a narrow range as U.S. markets closed early the day after the U.S. Thanksgiving holiday. Market analysts noted that trading was incredibly quiet and liquidity was thin, resulting in light volumes.
U.S. Composite PMI Output Index Unchanged
S&P Global reported that its flash U.S. Composite PMI Output Index remained unchanged at 50.7 this month. This was due to a modest rise in services sector activity offsetting a contraction in manufacturing, indicating expansion in the private sector.
Weakest Monthly Performance for the Dollar
The U.S. Dollar Index, which measures the U.S. currency against six peers, eased by 0.4% to 103.35. It was on course for its weakest monthly performance in a year, reflecting growing expectations that the Federal Reserve is done raising interest rates and could start cutting them next year.
Japanese Yen and BOJ’s Monetary Policy
Elsewhere, the Japanese yen remained flat against the dollar, with investors expecting that stubborn inflation may push the Bank of Japan to roll back monetary stimulus before long.
European Market Updates
The euro was higher after data confirmed that Germany’s economy shrank slightly in the third quarter from the previous three months. Sterling also rose to its highest since early September after British companies returned to growth in November.
Bitcoin’s Rise in Cryptocurrency Markets
In cryptocurrency markets, bitcoin rose to its highest since May 2022. A spate of filings for spot bitcoin and ether exchange-traded funds (ETFs) has revived the crypto market, which was crushed by a series of meltdowns last year.
It’s important to stay updated with the latest happenings in the financial markets. The fluctuations in various currencies and the impact of economic indicators play a crucial role in shaping global economies. Keeping an eye on these developments can help individuals and businesses make informed decisions.
