Dollar slips against euro

The dollar dipped against the euro on Tuesday in subdued trade, with many players away for year-end holidays and before publication of fresh US economic data, dealers said.

AFP/File – A sheet of one dollar bills. The dollar dipped against the euro on Tuesday in subdued trade, with many …

In London morning deals, the single currency rose to 1.4430 dollars from 1.4376 dollars in New York late on Monday, with traders winding down ahead of New Year festivities.

Against the Japanese currency on Tuesday, the greenback was unchanged at 91.62 yen.

Markets were looking ahead to the next batch of US indicators due later in the day, including the Conference Board's December consumer confidence index and data on housing prices, analysts said.

"The economic data are unlikely to trouble investors this week," said analysts at currency specialists Moneycorp in London.

"Today's helping covers German inflation, US house prices (Case/Shiller) and consumer confidence (Conference Board).

"With just a three-day week in which to get involved, most investors will choose to keep their powder dry," they added.

US data issued last week showed that weekly claims for jobless benefits dropped to the lowest level since September 2008.

That followed a dramatic improvement in the US labour market in November, when job losses narrowed to 11,000 and the unemployment rate dipped to 10.0 percent, according to official data released earlier this month.

"Expectations of an economic recovery in the United States continued to sustain underlying support for the dollar," said Yosuke Hosokawa, head of forex at Chuo Mitsui Trust Bank.

"The market has reacted positively to recent US economic data, including job figures," Hosokawa said.

Markets also welcomed a report from MasterCard Advisors Spending Pulse estimating that US retail spending rose 3.6 percent during the peak shopping period from the Thanksgiving to Christmas holidays compared with a year ago.

"But support for the dollar still lacks strength as major players, such as exporters, were absent from the market in the middle of the holiday season," Hosokawa added.

In London, the euro was changing hands at 1.4430 dollars against 1.4376 dollars late on Monday, 132.20 yen (131.74), 0.9009 pounds (0.8984) and 1.4867 Swiss francs (1.4877).

The dollar stood at 91.62 yen (91.62) and 1.0303 Swiss francs (1.0346).

The pound was at 1.6013 dollars (1.6000).

In trading here on Tuesday, the price of gold gained to 1,103.88 dollars an ounce from 1,104.50 dollars on Thursday, prior to the London Bullion Market's holiday closure on Friday and Monday.

AFP