Home Forex Dollar Index Inches Higher as Aussie, Kiwi Gain

Dollar Index Inches Higher as Aussie, Kiwi Gain

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The dollar inched higher on Wednesday and remained near a 14-year high against other major currencies. The Aussie and kiwi, meanwhile, gained despite downbeat data out of Australia.

Investors are awaiting the release of U.S. data due later in the day. The greenback remains supported by optimism over the U.S. economy and a potential rate hike in December.

The euro weakened 0.16% against the dollar to trade at 1.0608.

Markit, a research group, said its euro zone composite PMI, which measures the combined output of the service and manufacturing sectors, climbed to 54.1 in November from 53.3 in October. Analysts were expecting no change in the reading.

France’s manufacturing PMI fell to 51.5, a two-month low, this month from 51.8 in October. The services PMI climbed to 52.6, a two-month high.

Germany’s manufacturing PMI was down to 54.9 in November from 55 the previous month. The services PMI was up to 55, a six-month high.

The pound was lower against the U.S. dollar, trading at 1.2382.

Against the yen, the greenback slipped to 110.99, down 0.15%. The pair hit a six-month high of 111.4 at the start of the week.

USD/CAD remained virtually unchanged at 1.3447. USD/CHF was also steady at 1.0116.

The dollar index gained 0.08% to 101.17, hovering near Friday’s 14-year high of 101.54.

Elsewhere, the Aussie and kiwi climbed higher despite disappointing data out of Australia.

The Australian dollar was up 0.49% against the dollar to trade at 0.7438. The New Zealand dollar gained 0.21% against its U.S. counterpart, trading at 0.7078.

The Australian Bureau of Statistics reported that completed construction work declined by 4.9% in the third quarter. Analysts were expecting a decline of just 1.7%.

In the second quarter, completed construction work was down by 3.1%, revised from an initial report of a 3.7% dip.