Dollar falls further, ending nearly flat on the year

The US dollar fell for the seventh straight day, reaching its lowest level since June. The dollar index will end the year nearly flat. Trading was light with many financial centers closed for the New Year. Impeachment concerns made some headlines, but basically it was investors taking profits on long dollar positions that fueled the dollar's weakness. Equity markets are off slightly and bonds unchanged. Gold jumped to over $1520 per ounce, its highest level since September.

"Year's end is neither an end nor a beginning, but a going on with all the wisdom that experience can instill in us. Cheers to a new year and another chance for us to get it right."
Oprah Winfrey
  • FX Rates
    December 31, 2019

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The dollar index is closing the year on a weak note. For the year, it barely changed. There was little information for traders to digest, and most dollar selling was simply profit-taking on long dollar positions.

    GBP

    The best performing currency overnight was the UK pound, gaining nearly 0.75% as it traded back up to $1.32. Although much of its recovery was due to broad dollar weakness, there was also a sense of relief that Britain is heading into the new year free from the risk of a messy Brexit.

    EUR

    The euro strengthened again, its seventh straight day of gains. News out of Europe was light. The yield on the German 10-yr bund rallied to -0.19%, its highest level since May 2019, and well off August’s lows at -0.72%.

    CAD

    In very thin trading, the Canadian dollar rallied to C$1.30, its strongest level since October 2018. It will end the year the strongest of the G10 currencies, poised to gain nearly 5%.

    ASIA/PACIFIC

    Japanese markets were on holiday.
    The Chinese yuan gained on the dollar, and is approaching 6.95, its strongest level since August. China’s December PMI figure was unchanged.

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Scott Petruska, CFA
WRITTEN BY
Scott Petruska, CFA

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