(RTTNews) - The dollar was mixed Monday morning, falling sharply against the euro while paring its overnight gains versus the sterling and yen.
Traders have been steadily retreating from the dollar in favor of higher-yielding currencies amid speculation the interest rate gap between the US and other nations would widen as the global economy recovers.
However, the dollar was able to stabilize on Friday, with some betting its recent losses have been overdone.
There is little corporate or economic news expected to drive trading this morning. Wall Street is open on Columbus Day, but many traders will be away from their desks until earnings season kicks up again later in the week.
The dollar dropped to 1.4770 against the euro, unable to extend Friday's rebound. With the loss, the buck moved back toward a yearly low of 1.4843 set back in September.
On the flip side, the dollar hit a new four-month high of 1.5727 versus the slumping sterling, but eased back to 1.5800 approaching mid-morning. Concerns about the UK economy have hurt the sterling against all major counterparts, even the dollar.
The buck managed to firm up versus the yen, rising above 90 for the first time in October. Earlier this month, the dollar tested a 13-year low of 87.08 before finding its footing.
In economic news overseas, Germany's Federal Statistical Office announced that the wholesale price index decreased 8.1% year-on-year in September, compared to the 8.3% fall in the previous month. A year ago, wholesale prices were up 5.1%.
Looking ahead, US retail sales figures and the minutes of the Federal Reserve's latest policy meeting are due out later in the week.
After its two-day meeting that ended on September 22nd, the Federal Open Market Committee announced that it would maintain the target rate for the federal funds rate at 0 to 0.25%, while it continued to believe that economic conditions warrant exceptionally low levels of the federal funds rate for an extended period.
