Dollar on rise again while euro falls to discord

Story link: Dollar on rise again while euro falls to discord

The US dollar advanced 0.6 percent to ¥109.40 in relation to the yen on Monday.

It also rose against the Swiss franc, gaining 0.8 percent to SFr1.2724. The Australian dollar, however, held steady against the US dollar at $9.7762.

The New Zealand dollar also stood pat at $0.7152 in relation to the US dollar. Sterling held steady against the US dollar as well, sitting at $1.8232.

Sterling rose in relation to the yen, up 0.4 percent to ¥199.41, while it was up 0.6 percent against the Swiss franc to SFr2.3197.

The euro lost ground against the US dollar again, as well as falling in relation to the yen, and sterling on after a European Union summit could not come to an agreement concerning a budget.

Another factor was rumors that continued to speculate that the European Central Bank is thinking about cutting interest rates in the eurozone.

Analysts say, however, that the very fact that the euro continues to decline is making it less likely that the ECB will cut rates, especially now when crude oil price increases carry the risk of inflation.

The euro was down 1.2 percent to $1.2136 against the US dollar, fell 0.4 percent against the yen to ¥132.81, and fell 0.8 percent to £0.6656 in relation to sterling.