FX round-up: Dollar advances as euro falls to three year low before Greek election
The dollar was advancing against most major currencies on Friday as the effects of qualitative easing began to show.
CMC Markets analyst Jasper Lawler said: “The US dollar was stronger against all major currencies except the Japanese yen on Friday. There’s a new QE game in town; some of the flows out of euros are going into Japanese yen.”
The euro fell to new lows on Friday, recording its largest weekly decline against the dollar since September 2011, as Eurozone PMI figures were mixed and the markets awaited the Greek election on Sunday.
Chris Beauchamp from IG noted: “The problem for euro bulls (if there are any left) is that Greece’s elections on Sunday will only increase uncertainty and prompt a few more to sell the single currency and pick something where the outlook is more stable.”
The dollar index, which measures the US currency against a basket of six others, fell 0.38% to $95.12.
The dollar was down 0.81% to $0.8899 per euro by 08:48 on Monday while against the yen, the dollar rose 0.5% to ¥118.3120.