Dollar hits three-year low as bounce sputters, euro shakes off political concerns

January 16, 2018 / 8:31 PM / Updated an hour ago
Dollar hits three-year low as bounce sputters, euro shakes off political concerns
Shinichi Saoshiro


TOKYO (Reuters) - The dollar fell to a three-year low against its peers on Wednesday, with an earlier bounce sputtering as the euro edged back after shaking off a potentially negative turn in German politics.

The dollar index against a basket of six major currencies was 0.27 percent lower at 90.158 .DXY after hitting 90.113, its lowest since December 2014.

The dollar index momentarily recovered to 90.826 on Tuesday after slipping steadily this month on expectations major central banks would eventually normalize monetary policy.

But its rebound dissipated as underlying fundamental expectations that had weakened the greenback so far this year remained intact.

WHAT??


“The view held by many market participants is that monetary policies are headed for normalization across the globe. The dollar is bound to stay weak when such views prevail,” said Yukio Ishizuki, senior currency strategist at Daiwa Securities in Tokyo.

ME: So normalization is a bad thing? Huh? Help, I don't get it.



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https://www.reuters.com/article/us-global-forex/dollar-hits-three-year-low-as-bounce-sputters-euro-shakes-off-political-concerns-idUSKBN1F605W