Greenback holds pattern against yen and euro
On Monday, the evergreen buck traded mostly flat against the Japanese yen and euro, due to a lack of fresh trading signals as well as thin volume amid Japan’s summer holiday season.
The major American currency traded at ¥101.10 early Monday, compared with Friday’s reading of ¥101.30 in New York. The common currency traded at $1.1172, rising from $1.1155.
The WSJ Dollar Index, normally measuring the greenback against a basket of key currencies, tumbled 0.2%, trading at 86.22.
On Friday, the evergreen buck weakened against its counterparts after American retail sales as well as other data powered speculation that the US economy isn’t sturdy enough to enable the Federal Reserve to lift short-term rates later this year. Even with upbeat jobs data earlier this month, that showed the economy added more jobs than expected in July, the major American currency struggled to surge.
There’s a real risk of a weaker dollar and a strengthening yen, as many financial analysts state.