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FOREX-Dollar falls on more unwinding of bullish bets after Fed

* Last week's dovish Fed statement still weighing on dollar

* Euro strengthens after Draghi comments (Adds comments, updates prices)

By Sam Forgione

NEW YORK, March 23 (Reuters) - The U.S. dollar fell for a second straight session against a basket of major currencies on Monday after traders unwound bullish dollar positions on the likelihood that Federal Reserve policy will be accommodative over the near term.

The dollar added to its losses against the euro following a Fed statement on March 18 that suggested a less aggressive timetable for hiking interest rates. Last week was the dollar's worst week against the euro since late 2011.

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"The market is still positioned long dollars, short euros, so it's vulnerable to any kind of correction," said David Gilmore, partner at Foreign Exchange Analytics in Essex, Connecticut, on the unwinding of long-dollar bets. The dollar's weakness against the euro last week came after it hit 12-year highs against the currency.

The euro continued to strengthen against the dollar after European Central Bank President Mario Draghi said he expected consumer prices to rise gradually by the end of the year even if they might remain very low or negative in the months ahead.

Analysts said traders took this as a sign that the ECB may end its bond-buying scheme early, though Draghi said it intended to carry out purchases at least until end-September.

"Draghi's optimistic comments...added fuel to the recovery in the euro," said Kathy Lien, managing director at BK Asset Management in New York.

Lien also said that traders who had bet against or "shorted" the euro repurchased the currency ahead of Tuesday's release of euro zone manufacturing data for March. She said traders anticipated that the data could show improvement on the heels of stronger German industrial production data, which would support the euro further.

The euro was last up 1.31 percent against the dollar at $1.09650, not far from a nearly two-week high of $1.10625 hit last week. The dollar was last down 0.24 percent against the Japanese yen at 119.750 yen.

The dollar was down 1.2 percent against the Swiss franc at 0.96460 franc, not far from a two-week low of 0.96295 franc hit last week. The dollar index, which measures the greenback against a basket of six major currencies, was last down 1.07 percent at 96.860.

On Wall Street, U.S. stocks were little changed, with the S&P 500 last up 0.06 percent. Benchmark 10-year U.S. Treasury notes were last up 5/32 in price to yield 1.91 percent.

(Editing by Peter Galloway and Diane Craft)