US dollar rises on weaker euro, Swiss franc and yen
- The dollar index was up 0.21% to 90.815 at mid-morning in New York, while the euro was off 0.36% to $1.209. Against the Swiss franc the dollar was up 0.45%.
- The dollar may be more resilient in the near-term because "both growth and vaccination favour the U.S."
NEW YORK/LONDON: The US dollar bounced to a 2-week high on Monday on weakness in the euro, Swiss franc and Japanese yen amid views that the US has an advantage in growing its economy and vaccinating its population against COVID-19.
The dollar index was up 0.21% to 90.815 at mid-morning in New York, while the euro was off 0.36% to $1.209. Against the Swiss franc the dollar was up 0.45%.
The euro weakened after Germany reported that retail sales plunged by an unexpected 9.6% in December after tighter lockdowns last year to curb the spread of COVID-19 choked consumer spending in Europe's largest economy.
The dollar may be more resilient in the near-term because "both growth and vaccination favour the U.S," said Kamal Sharma, director of G10 FX strategy at BofA Merrill Lynch Global Research.
US-based strategists at Wells Fargo Securities wrote, "We think USD strength still has room to run." That's especially true against more volatile securities, they added.
The Australian and New Zealand dollars gave up early gains and were down 0.1% and 0.11%, respectively, against the greenback.
The US dollar also gained 0.3% against the Norwegian crown to 8.5815 crowns per dollar.
Jens Naervig Pedersen, chief analyst for FX and rates strategy at Danske Bank, noted the Norway central bank's Friday announcement of a surprisingly large increase in the daily pace of its fiscal Norwegian crown buying from 800 million crowns in January to 1,700 million in February.
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