Dollar Drops To 3-Year Low Against The Euro

Dollar Drops To 3-Year Low Against The Euro

The dollar is losing ground against its major rivals on Friday afternoon. The losses are more pronounced in comparison to its major European competitors after the developments of recent days.

The Euro rallied to a 3-year-high against the dollar on Friday after German politicians reached a breakthrough in the talks in the formation of a new coalition government. The currency of the minutes of the last meeting of the European Central Bank showed initially jumped on Thursday after the Central Bank was able to change to reflect the tone of their monetary policy communication at the beginning of the year, improving the prospects for growth.

A report released by the Commerce Department on Friday showed U.S. retail sales rose in line with economist estimates in the month of December. The Commerce Department said that retail sales climb 0.4 percent in December after an upwardly revised 0.9 percent in November.

Economists had expected retail sales to rise 0.4 percent compared to 0.8 percent increase originally reported for the previous month.

What is a sharp reversal of the trend in the energy prices, the Ministry of labour has published a report on Friday, the US show consumer prices rose less than expected in the month of December. The labor Department said the consumer price index inched up by 0.1 percent in December after climbing by 0.4 in November. Economists had expected prices rose by 0.2 percent.

Business inventories in the U.S. increased by slightly more than expected in the month of November, according to a report released by the Commerce Department on Friday. The report said business inventories increased 0.4 percent in November, while economists had expected inventories to rise by 0.3 percent.

The dollar has tumbled to a 3-year low of $1.2178 against the Euro on Friday afternoon, from an early high of $1.2039.

France’s consumer prices increased at a steady pace in December, latest data from the statistical office Insee showed on Friday. The consumer prices climbed 1.2 percent year-on-year in December, the same pace of increase as seen in November and in line with flash estimate.

The Dollar fell to an 18-month low of $1.3735 against the pound sterling on Friday afternoon, from an early high of $1.3537.

The greenback has slipped over a 1-month low of Y111.040 against the Japanese Yen this afternoon, from a high of Y111.692 this morning.

Japan recorded a current account surplus in the amount of 1.347 trillion yen in November, the Finance Ministry said on Friday, down 5.6 percent year-on-year. That was shy of expectations for a surplus of 1.836 trillion yen, and down from 2.176 trillion yen in October.

A measure of peoples “assessment of the Japanese economy declined unexpectedly in December, although marginally, survey figures from the “Cabinet Office” showed Friday.

The current index of the Economy Watchers’ survey fell to 53.9 in December to 54.1 in November. Meanwhile, economists had expected to improve the index to 55.1.