Dollar Continues Its Decline on Last Trading Day of the Year

The dollar continued to fall against other major currencies on Friday, the last trading day of the year.

Trading volumes are expected to remain thin ahead of the New Year’s Day holiday weekend.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.27% at 92.09 by 4:12 AM ET (16:12 GMT).

The greenback fell for the fourth consecutive day and was at its lowest level since the end of September. Some analysts think the weakness is due to sell offs after President Donald Trump signed the tax bill into law. The index was down 0.9% year-to-date.

Against the loonie the dollar was also down, nearing its lowest level since October 20. USD/CAD decreased 0.25% to 1.2537. The greenback also fell against the Japanese yen, with USD/JPY dipping 0.30% to 112.56. Meanwhile USD/CHF was down 0.27% at 0.9759.

Elsewhere, the euro was at a three-month high, supported by the lower dollar. EUR/USD increased 0.20% to trade at 1.1965, unmoved by the Spanish consumer price index, which came in at 0.1% in December versus the 0.3% expected. Traders are also looking ahead to the German consumer price index, which is released at 8:00 AM ET (13:00 GMT).