Forex News: U.S. Dollar Falls Amid Risk Appetite

U.S. Dollar Falls Amid Risk Appetite

(RTTNews) - The U.S. dollar weakened against other major currencies in the Asian session on Monday amid risk appetite, following the broadly positive cues from Wall Street on Friday, boosted by strong gains in markets in Japan, Indonesia and South Korea as traders remain optimistic about a 25-basis point rate cut by the U.S. Fed in December after data showing consumer sentiment in the U.S. improved less than expected in November.

Traders also looked ahead to the release of key U.S. economic data later in the week, including readings on consumer price inflation preferred by the Fed.

Gains across most sectors led by mining, energy and technology stocks, also led to the upturn of the investor sentiment.

Crude oil prices climbed higher amid rising concerns about Russia/Ukraine conflict. West Texas Intermediate Crude oil futures for January closed up $1.14 or 1.6 percent at $71.24 a barrel. WTI crude futures gained 6.5 percent in the week.

In the Asian trading today, the U.S. dollar fell to a 6-day low of 153.55 against the yen, a 5-day low of 1.2607 against the pound and a 4-day low of 0.5867 against the NZ dollar, from Friday's closing quotes of 154.74, 1.2531 and 0.5833, respectively. If the greenback extends its downtrend, it is likely to find support around 151.00 against the yen, 1.29 against the pound and 0.60 against the kiwi.

Against the euro and the Swiss franc, the greenback edged down to 1.0490 and 0.8892 from last week's closing quotes of 1.0417 and 0.8937, respectively. The greenback may test support near 1.08 against the euro and 0.87 against the franc.

Against the Australia and the Canadian dollars, the greenback dropped to near 2-week lows of 0.6551 and 1.3928 from last week's closing quotes and 0.6501 and 1.3980, respectively. On the downside, 0.66 against the aussie and 1.37 against the loonie are seen as the next support levels for the greenback.

Looking ahead, German Ifo business climate index for November is due to be released in the European session at 4:00 am ET.

In the New York session, U.S. Dallas Fed manufacturing index for November is slated for release.

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