Dollar Declines Against Euro, Yen

By Ira Iosebashvili 
        The dollar declined against its peers Tuesday, as investors cashed 
out after a period of sharp gains in the currency. 


        The Wall Street Journal Dollar Index, which gauges the buck against a 
basket of 16 currencies, was down 0.6% at 88.16 in late afternoon New York 
trading. The euro was up 1.1% at $1.0942. The dollar was down 0.3% against the 
yen at Yen123.86. 


        With a dearth of economic news on the horizon, investors are locking 
in returns notched last week, when the dollar rallied on expectations that the 
Federal Reserve may raise interest rates in the next few months. Higher rates 
buoy the dollar by making it more attractive to investors seeking yield. 


        "It's a quiet week, there's not a whole lot of data, and investors 
are using this as an opportunity to take profits," said Omer Esiner, chief 
market analyst at Commonwealth Foreign Exchange. 


        Last Wednesday, Fed Chairwoman Janet Yellen said the U.S. central 
bank is on a path to raise interest rates this year as long as the current 
economic recovery continues apace. The comments buoyed the U.S. currency, 
helping the WSJ Dollar Index notch a more than 1% gain from July 10 to July 20. 



        "The Fed was pretty consistent in pointing out that the near-term 
risk is for a rate increase in September," Mr. Esiner said. "Longer term, the 
market still favors the dollar." 


        Write to Ira Iosebashvili at ira.iosebashvili@wsj.com 


        (END) Dow Jones Newswires


        July 21, 2015 16:58 ET (20:58 GMT)

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