Greenback strength weakens dollar

 

piggy bank, coins, money, dollarThe Australian dollar has drifted back below 94 US cents as the greenback strengthens on dwindling risk appetite.

At 0700 AEST on Monday, the local currency was trading at 93.96 US cents, down from 94.15 cents on Friday.

The US dollar was being supported by euro weakness, Bank of New Zealand currency strategist Raiko Shareef said.

“The Australian dollar on Friday was a bit softer on the back of broad-based US dollar strength, which was mainly driven by euro weakness,” Mr Shareef said.

“This morning, it’s a little bit subdued and we think it’s about weariness on geopolitical concerns, especially the fact that the European Union looks like it’s stepping up its sanctions on Russia, which definitely has taken the edge off risk sentiment.”

It’s a big week for economic news and data, with the release of Chinese and European manufacturing figures, US gross domestic product and employment figures as well as the Federal Reserve’s July monetary policy decision.

On the local calendar, the main event will be Thursday’s building approvals figures for June.

AAP

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