02.13.2018 / 07:50

Dollar Edges Lower Amid Stock Market Rebound

Major currencies including the dollar were muted on Monday, as traders digested last week’s volatility in global equity markets, which had major U.S. benchmarks face their worst weekly declines since early 2016. Japan was also out for the National Foundation Day holiday. Still, foreign-exchange investors will continue to track equities for now, as U.S. index futures are pointing higher, to see whether any improvement could stick. If not, haven currencies should see get another push. Also on market participants’ minds is Wednesday’s consumer-price inflation data, which will be a barometer for the anticipated March interest rate increase by the Federal Reserve. In economic data, the U.S. ran a budget surplus of $49 billion in January, up from $51 billion in the same period last year. For the fiscal year-to-date, the country’s deficit amounts to $176 billion, compared with $159 billion year-on-year.

The U.S. dollar weakened slightly against its major rivals on Monday, with currency traders assessing a rebound in global equity markets. The ICE U.S. Dollar Index which measures the currency against its six main rivals, was down 0.3% at 90.145, after recording its biggest weekly gain since December 2016 last week. The broader WSJ U.S. Dollar Index slipped 0.2% to 84.06. The euro strengthened modestly, last trading at $1.2289, up from $1.2252 late Friday. The British pound was off tepidly, dipping to $1.3831 versus $1.3830 late Friday. Against the Japanese yen and the Swiss franc which rose last week as investors fled from the turmoil in equity markets into havens that draw flows during times of markets distress. One dollar bought ¥108.60 versus ¥108.80, and 0.9384 francs, down from 0.9394 late Friday in New York.