US Dollar Index Weaker As Euro Strengthens
Despite its biggest weekly gain since February last week, the US dollar index declined for the third straight quarter in the three months to September— its longest quarterly losing streak since the financial crisis a decade ago.
The dollar index, which is a measure of the buck against a basket of six global peers, fell 2.7% in the third quarter to about 93, according to FactSet data.
That comes despite the recent rebound in the US dollar, which climbed 0.9% last week.
The dollar has been up for three straight weeks, pushing the index to a 0.4% gain for September — the first monthly gain since February.
The dollar rallied this month after the Federal Reserve said it would begin unwinding its $4.5 trillion balance sheet in this month and signalled there could very well be a third rate rise this year, and up to three next year.
Despite the recent increase, the dollar index is down 9% year-to-date.
The Aussie dollar ended the day, week and quarter on 78.34 cents - down 1.7% on the month against the greenback and up 1.8% for the quarter.
For the year to far it is up 9% against the greenback.
On the trade weighted index, the Aussie currency is up 1% in the quarter and a more modest 3.5% year to date.
That reflects the gains made by the euro especially against the US dollar.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.