Sharjah24 – Reuters: The dollar languished near the bottom of its recent range against major peers on Tuesday, knocked back by weak U.S. factory data overnight and on market wagers of faster normalisation of monetary policy in other countries.
The dollar index, which measures the greenback against six peers, weakened 0.05% to 93.894 from Monday. It has oscillated for the past three weeks between 93.671 and the one-year high of 94.563, reached last Tuesday.
Over the past week though, it has trended lower, with a tapering of Federal Reserve stimulus as early as next month already priced in, along with a first interest-rate increase next year.
A recovery in risk sentiment has also weighed on the safe-haven U.S. currency.
The U.K. and New Zealand led a rise in short-term bond yields globally, with rates in Europe and Australia climbing comparatively more than those in the U.S., pressuring the dollar.
However, Westpac remains bullish on New Zealand's kiwi dollar - which isn't part of the dollar index - targeting a climb to $0.74 by year-end, and recommending buying any dips to $0.6985.
The kiwi rose 0.11% to $0.7093, edging back toward a one-month high of $0.7105 reached on Monday.
The Aussie dollar gained 0.09% to $0.74225, approaching a more than one-month high of $0.7440 touched at the end of last week, even after minutes of the Reserve Bank of Australia's September meeting showed on Tuesday that policymakers are concerned tighter policy could harm the labour market.
Sterling added 0.13% to $1.37455, nearing Friday's one-month peak at $1.3773.
The euro advanced 0.09% to $1.16205, approaching the top of this month's trading range.
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