Tuesday, November 11, 2014

$USD - Dollar little changed in subdued trade

The dollar was little changed against a basket of major currencies in subdued trade on Tuesday, as expectations that the recovery in the U.S. will outstrip other major economies lent support to the greenback.

The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.02% to 87.90, not far from Friday's four-and-a-half year peaks of 88.31.

The dollar slid in the previous two sessions after Friday’s softer than expected U.S. jobs report prompted a bout of profit taking to lock in gains after the greenbacks recent run higher.

The dollar has rallied over the past two months as broadly stronger economic data fuelled expectations that the Federal Reserve will raise interest rates sometime in 2015.

In contrast, central banks in Japan and the euro zone are likely to stick to a looser monetary policy stance in a bid to spur growth and inflation.