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Global Markets: Dollar hits three-year low vs euro; Wall Street hits new highs

Reuters  |  NEW YORK 

By Caroline Valetkevitch

NEW YORK (Reuters) - The fell to a more than three-year low against the euro on Friday, extending recent losses on expectations European Central policymakers are preparing to reduce stimulus, while U. S. stocks continued to rally and marked record closing highs.

Optimism about fourth-quarter earnings boosted stocks. shares climbed following quarterly results from and . A stock index registered an eighth straight week of gains.

The euro's rise weighed on the dollar index <. DXY>, which measures the greenback against six rival currencies. The index was down 1 percent, after slipping to a four-month low of 90.954.

For the year, the dollar index was down 1.28 percent, its worst performance over a year's first nine trading days since 2010, according to data.

"The latest ECB comments were a bit on the hawkish side, so that's giving more life to the euro," said Minh Trang, senior at Silicon Valley in Santa Clara,

Sterling rocketed to its highest level against the dollar since the Brexit vote to leave the after a report that the and were open to a deal for Britain to remain as close as possible to the trading bloc.

Sterling was last trading at $1.3731, up 0.03 percent.

The and both registered an eighth record closing high out of the first nine trading days of 2018, while the Dow boasted its sixth closing high of the year.

Data showing robust U. S. drove investor optimism about economic growth, also boosting sentiment in the

"It seems like the is going OK, inflation is kind of nonexistent right now, wage growth is not an issue for most income statements, so what's not to like here?" said Stephen Massocca, at in

The <. DJI> rose 228.46 points, or 0.89 percent, to 25,803.19, the <. SPX> gained 18.68 points, or 0.67 percent, to 2,786.24, and the Composite <. IXIC> added 49.29 points, or 0.68 percent, to 7,261.06.

The pan-European index <. FTEU3> rose 0.23 percent, and MSCI's gauge of stocks across the globe <. MIWD00000PUS> gained 0.66 percent.

A robust U. S. inflation report boosted Treasury yields.

The two-year yield , sensitive to traders' views on interest rates, rose to more than 2 percent for the first time since the financial crisis.

In commodities, prices rose for a sixth day after Russia's minister said crude supplies were "not balanced yet," alleviating market concerns about a wind-down of the OPEC-led deal to reduce production.

U. S rose 50 cents to settle at $64.30 a barrel, while Brent rose 61 cents to settle at $69.87.

(Additional reporting by in Helen Reid in London and Kate Duguid and Saqib Aqbal Ahmed in New York; Editing by and Leslie Adler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, January 13 2018. 04:12 IST
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