FX round-up: US dollar turns positive for the year

One of the broadest measures of the US dollar´s value strengthened to its best level in over a year as market interest rates in the States continued to move higher at the start of the week.

As of 2048 GMT the US dollar spot index was up by 0.95% and changing hands at 100.0 which meants it was now up by 0.7% for the year.

Against the Mexican peso however the US dollar in fact weakened, slipping by 0.68% to 20.71 after US President-elect appeared to soften his stance towards immigration from Mexico slightly.

In parallel, the single European currency dropped 1.11% to reach its weakest level in 2016, at 1.0734.

Cable was also lower, dropping 0.83% to end the day at 1.2492, while dollar/yen was up 1.6% to 108.36.

To take note of, the odds of a 25 basis point December interest rate hike by the US central bank increased to 92%.

The main emerging market currencies were similarly weak, with the greenback up by 0.94% versus Brazil´s real at 3.4344 and by 1.25% to 3.2895 against the Turkish lira.

The Aussie on the other hand managed to edge up by 0.07% to 0.7551, supported by overnight gains in iron ore futures, although thermal coal forwards weakened.