NEW YORK: The US dollar held near a more than one-week low against a basket of major currencies on Monday as some traders who had taken bullish bets on the greenback took profits ahead of year- end, while the Canadian dollar fell on a dip in oil prices.
Trading was thin, with Australia and the London market closed for local holidays and major dealing rooms across Europe empty or operating on skeleton staffing.
The dollar edged lower as bullish bets on the currency, which have been popular this year on the view that a Federal Reserve rate hike and looser monetary policy abroad would boost the greenback, were closed out to realize profits before year-end.
"It's year-end profit-taking," said Kathy Lien, managing director of FX strategy for BK Asset Management in New York.
The dollar index, which measures the greenback against six major currencies, was last down 0.06 percent at 97.910. The index hit 97.811, its lowest since Dec. 16, in early morning trading.
The euro was last up 0.05 percent against the dollar at $1.09760, just below a more than one-week high of $1.10000 .
While the dollar was down slightly against the yen, it edged up from a near two-month low of 120.050 yen hit on Friday. The yen's strength on Friday was likely in response to some traders closing short positions against the currency, said Vassili Serebriakov, currency strategist at BNP Paribas in New York.
The yen has been less popular this year with traders than the dollar. The greenback is up about 0.7 percent against the yen through Friday, since the Bank of Japan is one of the central banks loosening monetary policy.
The dollar was last down 0.06 percent against the yen at 120.375 yen.
The Canadian dollar, which is sensitive to oil price moves since Canada is a major exporter of the commodity, fell against the dollar as oil prices fell on excess supply. The dollar was last up 0.50 percent against the loonie, at C$1.3889.
Overall moves in currency markets were modest given the thin trading conditions.
"London was off today, and that really adds to already thin year-end liquidity conditions," BNP's Serebriakov said.
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