The Dollar declined slightly against higher yielding currencies in today's early trading as concerns over credit losses in Dubai eased and better than expected economic data signaled the global economy is on the way to recovery, boosting demand for riskier assets. The Dollar weakened to $1.5013 per EUR from $1.5005 yesterday in New York. The greenback lost 1.9% in November overall. The Dollar was at Y86.45 from Y86.75 yesterday.
Investors also appeared hesitant ahead of this week's U.S. and Euro-Zone economic data as well as interest-rate decisions by several major central banks, therefore limiting their risky positions. Throughout the economic crisis, the U.S. Dollar has tended to fall on improved economic outlook and equity gains. The Federal Reserve's policy of near-zero interest rates has which the U.S. Dollar one of the lowest yielding currencies in the world also adds to the negative pressure on the Dollar against riskier, higher yielding currencies such as the EUR. Giving a lift to sentiment Monday and weighing on the USD, the Chicago PMI showed more businesses in the Chicago region were expanding in November. The business activity index rose to 56.1% this month, the highest since August 2008.
Looking ahead to today investors should follow the release of the ISM Manufacturing PMI and Pending Home Sales due to be released at 15:00 GMT. A continuation of the optimistic data will likely continue putting pressure on the greenback.