Dollar Extends 4-Month Low Versus Euro
The dollar remained weak versus other major currencies on Monday, extending its multi-month lowsagainst the euro and sterling as the price of U.S. crude soared above $106 a barrel.
With the Federal Reserve in the difficult position of trying to preserve the recovery while dealing with inflationary pressures, the dollar has been in retreat for the past few weeks.
Friday's jobs report raised hopes the U.S. economy is on the mend, but soaring food and energy prices may threaten the recovery.
The buck slipped to a 4-month low of $1.4020 versus the euro, having dropped more than 10 cents from early-2011 highs.
Renewed concerns about Europe's sovereign debt situation failed to give the dollar a boost. Moody's cut Greece's rating further below junk status on Monday.
An indicator of investor sentiment in the Eurozone rose to its highest level in nearly three-and-a-half years in March, latest survey showed Monday.
The Sentix investor sentiment index, an indicator of confidence around 900 investors, rose to a new high of 17.07 in March from 16.70 in February. The indicator rose for a third consecutive month. Economists were looking for a score of 17.2.
The dollar was on defense against the sterling this morning, staying within a hair of last week's yearly low of $1.6343.
The dollar drifted lower to Y82 versus the yen, unable to sustain any movement away from November's 15-year low of Y80.22.
Choppy trading left the buck near a recent three-year low three cents below par versus its petro-linkedCanadian counterpart.
Looking ahead, the U.S. Federal Reserve is expected to release its monthly consumer credit reportat 3 PM ET. Consumer credit for January is likely to show an increase of $2.5 billion. Revolving credit, which increased for the first time in 28 months in December, is likely to show further improvement in January.