Dollar Rises in Trade After Vacations, Loonie Rises as Oil Prices Soar

The dollar is slightly appreciated against key companies such as the euro and the yen on Monday, boosted by the relative strength of the US economy, while losing ground against the Canadian dollar more rising crude oil prices.

Financial markets in Australia, Hong Kong and many major European countries are closed Monday for the Easter holidays. Currency trading is continuing globally, but volume is expected to be weak.

The dollar was gloomy against the loonie as crude oil prices rose more than 2% following a Washington Post report that the United States would likely ask all Iranian oil importers to stop trading. their purchases or would be subject to US sanctions.

The greenback has found support in recent weeks due to the gradual rise in US 10-year Treasury yields and signs of strength in the world's largest economy, with better-than-expected retail sales in March, after an early start. Weak year.

"It's better to say that the euro has been weak rather than the dollar is strong," said Yukio Ishizuki, currency strategist at Daiwa Securities.

"Traders have for the most part taken into account the weak economy of the euro zone," Ishizuki said. "It's a bit difficult to see the euro weaken further here, so I think the dollar will struggle to strengthen."

The dollar index was down a tenth of a percent to 97,383, down slightly after recording a 0.4% gain last week.

The index remained at a striking distance from its peak of 97.71 reached in 2019, brushed early March.

Investors will immediately focus on sales of existing homes in the United States for the month of March, at 14:00 GMT, to find new clues to the health of the US economy.

"US bond yields have risen slightly, I think the dollar is bought to some extent in response to that," said Kazushige Kaida, head of foreign exchange trading at State Street Bank.

In February, US home sales reached their highest level in 11 months, as the housing market picked up after a pause in the Federal Reserve's interest rate hike.

The euro fell nearly 0.1% to 1.1240 dollar, which adds to losses of nearly 0.5% last week after Thursday's data showed that the euro was down by almost 0.1%. activity in the German manufacturing sector was contracted for the fourth consecutive month in April.

Sterling recorded a final drop to $ 1.2996, plunging below the $ 1.30 mark and close to 0.4% on the two-month low of $ 1.2945 last month.

The Canadian dollar rose about a quarter of a cent to C $ 1.3360, due to higher crude oil prices following the Washington Post report.

Against the Japanese yen, the dollar was up about 0.1% to 111.94 yen, which is close to the peak of 112.17 reached last Wednesday.

Starting on Saturday, Japan will enjoy an unprecedented 10-day vacation from late April to early May to mark the rise of the new Emperor, Crown Prince Naruhito.

Ishizuki, of Daiwa, said he expected Japanese investors to remain less active in currency trading while traders and companies go into vacation mode.