Dollar slips lower but remains close to 14-year peak
The dollar slipped lower but continued to hover near a 14-year peak against the other majors currencies on Thursday, amid sustained optimism over the U.S. economy and expectations for a December rate hike by the Federal Reserve.EUR/USD rose 0.30% to 1.0711, off Wednesday’s 11-month trough of 1.06651.
The greenback was boosted after Philadelphia Fed head Patrick Harker said on Wednesday that he was in favor of raising interest rates, while Cleveland Fed President Loretta Mester said the Fed must not overreact to market moves following the shock result of the presidential election.
The dollar also remained broadly supported by rising U.S. government bond yields and expectations for ramped up fiscal stimulus once Donald Trump becomes president.
Elsewhere, GBP/USD gained 0.24% to 1.2471 after the U.K. Office for National Statistics reported that retail sales increased 1.9% in October, compared to expectations for a 0.4% rise.
Year-on-year, retail sales climbed 7.4% last month, beating expectations for a 5.3% rise.