US dollar gains versus euro

US dollar gains versus euro

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The US dollar was higher against most major currencies on Monday and hit a seven-week high versus the euro on reduced chances that the Federal Reserve will cut interest rates again next month.

Also helping the greenback was a report from the Commerce Department that the US current-account deficit shrunk to $178.5 billion in the third quarter on a smaller trade deficit and more buying of US assets by overseas investors.

The dollar traded at $1.4384 to the euro in early afternoon trade in New York after trading at $1.4331 to the euro earlier in the session.

One of the currencies that managed a gain versus the US dollar was the Canadian dollar, which traded at C$1.0065 to the US dollar on speculation that the Bank of Canada will not cut interest rates again soon.

Fears that trouble in the UK housing market could cause the Bank of England to cut interest rates again sent the pound lower after online house price tracker Rightmove said that the average price of a house in the UK fell the most in five years this month.

The UK currency was at $2.0155 to the pound in late London trade but had recovered to $2.0196 to the pound in early afternoon trade in New York, while it traded at €1.4041 to the pound and at ¥228.5579 to the pound.

The yen and the Swiss franc both gained in relation to the euro as declining equities markets convinced investors to flee risk.

In afternoon trade in New York, the yen traded at ¥162.7837 to the euro and at ¥113.1700 to the US dollar while the Swiss franc sat at SFr1.6566 to the euro and at SFr1.1517 to the greenback.