Dollar retreats on profit taking after Federal Reserve move

NEW YORK: The dollar dropped against the euro and other major currencies Thursday in a move analysts attributed to profit taking following last week s Federal Reserve decision to lift US interest rates.


The greenback has been on the defensive most of the week amid light trading volume and a limited news flow.

“Investors, who benefited from bullish bets on the dollar in the wake of the Fed s interest rate hike earlier this month, look content to cash in those gains ahead of the year end,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.

Joe Manimbo, senior market analyst at Western Union Business Solutions, said, “the dollar is paying the price for being the year s top performer as the few still at their trading desk are liquidating some of their winnings to realize profit.”

Thursday s rise in the euro means the single currency is on track for about a four percent rise in December, reflecting the European Central Bank s “milder policy prescriptions than markets had anticipated,” Manimbo said.