Dollar set for 2% weekly gain against Aussie but falls against the Euro

New York (Nov 22)   The U.S. dollar extended its mixed performance Friday, rising against commodity currencies such as the Australian dollar while dropping against the euro and British pound. “It has been difficult to talk about the U.S. dollar in general terms. It continues to be mostly softer against the European complex, but firmer against the yen and the dollar-bloc currencies,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman. “Although there has been much talk this week, the forces shaping the investment climate have not really changed.”

Some of that talk centered on expectations of U.S. monetary policy. Minutes from the Federal Reserve’s October meeting released Wednesday suggested that the central bank is considering options to slow the rate of it bond buys soon The Fed currently buys $85 billion in mortgage and Treasury debt each month in an effort to stimulate the economy, and those purchases have been understood to weigh on the greenback.

Still, some analysts were quick to point out that the minutes didn’t really change much; most had expected the Fed to begin slowing purchases in March, after another round of budget deadlines early next year.

The Australian dollar  dropped to 91.59 U.S. cents from 92.21 U.S. cents late Thursday, as the New Zealand dollar fell to 81.55 U.S. cents from 82.27 U.S. cents. The Aussie has shed 2.2% against the greenback this week to date. 

The ICE dollar index, a measure of the greenback against six rivals, declined to 80.795 from 81.070. The index is heavily weighted toward the euro.