The dollar rose smartly on Monday against the Australian dollar and emerging market currencies hurt by weaker commodity prices, but was little changed against other major currencies after 10 weeks of gains by the dollar index. The dollar index, a basket of six leading currencies traded against the dollar, wobbled around unchanged. It was last up 0.01 percent after briefly touching a high last seen during July 2010.
Last week, the index extended its longest winning streak since the greenback's free float in 1973. The euro, which traded at nearly $1.40 in May, was up 0.03 percent against the dollar at $1.283 in late trading after touching a high of $1.2867. The Japanese yen was up 0.15 percent against the dollar at 108.86 yen to the dollar.
"We are seeing a little bit of consolidation in the dollar against its major rivals after a pretty long streak of gains," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. "On the other hand, you have the dollar up against higher yielding, commodity-based currencies like the Aussie." The Australian dollar touched a seven-month low of $0.8854 against the US dollar. Concerns over global growth and suggestions at a meeting of G20 officials that China might hold off from further economic stimulus weighed. China and Australia are major trading partners, and the Australian currency often is used as a liquid proxy for China plays.
"The Aussie is really just playing catch-up with dollar strength," said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York. "The (US) dollar has seen a lot of strength, and that's being given back a little bit today." Canada's dollar also weakened on lower commodity prices, with the Loony last off 0.6 percent against the US dollar at $1.103. The Brazilian real was down 1.1 percent.
In energy trading, Brent crude oil fell for a third session in four, as sluggish demand and ample supplies outweighed expectations of a cut in oil output from the Organisation of the Petroleum Exporting Countries. November Brent was off $1.34 at $97.04, while US crude futures CLc1 were down 89 cents at $91.52.