AGL 39.58 Decreased By ▼ -0.42 (-1.05%)
AIRLINK 131.22 Increased By ▲ 2.16 (1.67%)
BOP 6.81 Increased By ▲ 0.06 (0.89%)
CNERGY 4.71 Increased By ▲ 0.22 (4.9%)
DCL 8.44 Decreased By ▼ -0.11 (-1.29%)
DFML 41.47 Increased By ▲ 0.65 (1.59%)
DGKC 82.09 Increased By ▲ 1.13 (1.4%)
FCCL 33.10 Increased By ▲ 0.33 (1.01%)
FFBL 72.87 Decreased By ▼ -1.56 (-2.1%)
FFL 12.26 Increased By ▲ 0.52 (4.43%)
HUBC 110.74 Increased By ▲ 1.16 (1.06%)
HUMNL 14.51 Increased By ▲ 0.76 (5.53%)
KEL 5.19 Decreased By ▼ -0.12 (-2.26%)
KOSM 7.61 Decreased By ▼ -0.11 (-1.42%)
MLCF 38.90 Increased By ▲ 0.30 (0.78%)
NBP 64.01 Increased By ▲ 0.50 (0.79%)
OGDC 192.82 Decreased By ▼ -1.87 (-0.96%)
PAEL 25.68 Decreased By ▼ -0.03 (-0.12%)
PIBTL 7.34 Decreased By ▼ -0.05 (-0.68%)
PPL 154.07 Decreased By ▼ -1.38 (-0.89%)
PRL 25.83 Increased By ▲ 0.04 (0.16%)
PTC 17.81 Increased By ▲ 0.31 (1.77%)
SEARL 82.30 Increased By ▲ 3.65 (4.64%)
TELE 7.76 Decreased By ▼ -0.10 (-1.27%)
TOMCL 33.46 Decreased By ▼ -0.27 (-0.8%)
TPLP 8.49 Increased By ▲ 0.09 (1.07%)
TREET 16.62 Increased By ▲ 0.35 (2.15%)
TRG 57.40 Decreased By ▼ -0.82 (-1.41%)
UNITY 27.51 Increased By ▲ 0.02 (0.07%)
WTL 1.37 Decreased By ▼ -0.02 (-1.44%)
BR100 10,504 Increased By 59.3 (0.57%)
BR30 31,226 Increased By 36.9 (0.12%)
KSE100 98,080 Increased By 281.6 (0.29%)
KSE30 30,559 Increased By 78 (0.26%)

The dollar hit a six-week high against the yen on Monday as traders bought back the greenback after selling it heavily for most of the year and braced for US economic growth to pick up steam in 2010. The euro dipped below $1.43, near a 3-1/2-month low, as lingering concerns about Greece's fiscal health weighed on the currency and the outlook for the 16-country euro zone economy.
Trading volume was light, which contributed to the size of some moves, but recent strong US jobs and consumer data have boosted expectations that the Federal Reserve may hike interest rates next year before its counterparts in Japan and Europe. The Bank of Japan last week said it would not tolerate zero inflation or falling prices, suggesting interest rates are set to stay low for some time yet.
"There's a belief that the US economy is recovering at ... a much more rapid pace than many people had previously thought," said Greg Salvaggio, senior vice president of capital markets at Tempus Consulting in Washington. "As a result, traders are a little bit anxious about the possibility of a shift in the Fed's interest rate policy next year."
The dollar rose 0.9 percent to 91.16 yen, near its highest level since early November, while the euro rose 0.5 percent to 130.23 yen. The euro was down 0.4 percent at $1.4282, near Friday's low of $1.4262 set on electronic trading platform EBS, its weakest since September 4. The Fed reiterated earlier this month that interest rates will remain low for "an extended period." Charles Evans, president of the Chicago Federal Reserve Bank, said on Monday that to him "extended period" means about three to four meetings of the US central bank's policy-setting panel.
In an interview with business television channel CNBC, Evans also said low inflation will give the central bank room to keep monetary policy easy for an extended period. Most US primary government securities dealers expect the Fed to hike rates by the end of the first quarter of 2011, with only the most optimistic seeing an increase during the second quarter of 2010, according to a Reuters poll.
The euro recovered most losses against the Swiss franc after tumbling to a nine-month low overnight when traders took advantage of thin liquidity to push the common currency quickly through stops below 1.49 Swiss francs. It was last down 0.1 percent at 1.4937 francs.
The franc earlier fell sharply against the dollar and euro, and traders said a large order by a commercial bank triggered unconfirmed talk of Swiss National Bank intervention. Against the dollar, the euro traded above $1.50 coming into December but has since been pressured by concerns about the fiscal health of some countries on the euro zone periphery following recent rating agency downgrades on Greek debt.

Copyright Reuters, 2009

Comments

Comments are closed.