Reuters: Euro nears seven-week peak while dollar remains stable

The US dollar remained stable near a five-week low following weak US economic data, while the euro climbed to nearly a seven-week high.

The dollar index, which tracks the currency against six major peers, stood at 98.94, showing little change, Reuters reports.

Despite a nine-day decline, the index remains nearly 9% lower compared to a year ago. Analysts note that markets have already priced in a Federal Reserve rate cut, making signals about future monetary policy decisive.

Meanwhile, the euro dipped less than 0.1% to $1.1657, staying near its highest level since October 17.

The currency was supported by eurozone business activity, which grew at its fastest pace in 30 months in November.

So far this year, the euro has strengthened more than 12%, marking its largest gain since 2017.

Amid uncertainty over US monetary policy and expectations regarding European Central Bank decisions, the yen remained at 155.22 per dollar.

The British pound hovered near $1.3337, approaching its highest level since October 28, while the Swedish krona weakened due to slowing inflation.

The Chinese yuan eased slightly but remained near a 14-month high after the central bank set a moderate official midpoint.

Analysts warn that geopolitical developments and Fed rate expectations continue to keep currency markets highly volatile.

By Jeyhun Aghazada