NEW YORK (Dow Jones)--The dollar is little changed against the yen early Monday, hovering close to its recent highs, as investors make last-minute year-end trades.
Currency movements reflect the market thinness that's typical for the days between the Christmas and New Year's breaks, rather than any underlying fundamental factors, said analysts.
The dollar has rallied significantly in December and is sticking close to the two-month peak it reached last week against the yen. It's also holding on to most of its December gains against other currencies, although prices show some differences compared with late Thursday before the Christmas break.
"I wouldn't read too much into [Monday's] moves," said Geoffrey Yu, currency strategist at UBS AG in London.
Markets are closed Monday in the U.K., Canada and several other countries, while many investors are still vacationing in countries where markets are open. The low volumes exaggerate price movements.
"One or two trades today can push the markets in one direction or another," he said.
Compared with late Thursday levels, when most investors were away for the holiday break, the euro Monday was at $1.4406 from $1.4359, according to EBS via CQG. The dollar was at Y91.54 from Y91.62, while the euro was at Y131.84 from Y130.50. The U.K. pound was at $1.5982 from $1.5949. The dollar was at CHF1.0334 from 1.0387.
The Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 77.583 from 77.841.
The attempt to set of a bomb on a Northwest Airlines flight landing in Detroit on Christmas Day failed to have an effect on currency markets, said traders.
-By Fabio Alves, Dow Jones Newswires; 212-416-2204; fabio.alves@dowjones.com
