Currency – The dollar declined from a one-week summit


© Reuters. The dollar declined from a one-week summit

Investing.com – The dollar declined from a high of a week against a basket of other major currencies on Tuesday, while the euro has increased due to persistent concerns about the political upheaval in Germany.

The index dollar, which measures the greenback’s strength against a basket of six major currencies, fell 0.10% to 93.91 at 03:30 AM ET (08:30 AM GMT), near a high of 94.02 reached during the night.

The euro rose with the EUR/USD up 0.14% at 1.1745, from a higher to a week of 1.1721 reached Monday, after the talks for the formation of a coalition in Germany had failed.

The euro remained on the defensive after German chancellor Angela Merkel has stated that she could not form a coalition government and would prefer to organize new elections, rather than just a minority government, but the German president said that political parties should form a government.

The prospect of political uncertainty is prolonged in the largest economy of the euro zone worried investors, and is the last episode of political turmoil to hit the region.

The euro was stable against the yen with EUR/JPY at 132.20 after having declined to 131.16 Monday, its lowest level since September 15.

Against the pound, the euro is stable, with the EUR/GBP at 0.8866.

The dollar declined against the yen, with USD/JPY down 0.09% to 112.51, which is close to a low of 111.87.

The exchange volumes should have remained relatively low prior to the Thanksgiving holiday in the United States on Thursday, which is also a national holiday in Japan.

Investors are awaiting remarks from the president of the federal Reserve, Janet Yellen, on Tuesday, while the minutes of the November meeting of the Fed was to be made public Wednesday.

During this time, the australian dollar was at its lowest level since four months, with a decline of 0.16% to 0,7540 after the minutes of the November meeting of the Reserve Bank of Australia which showed that there was “considerable uncertainty” about the speed of wage growth and inflation.

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