FOREX-Dollar edges up from 13-month low, aided by solid U.S. data

Reuters




* Dollar rises after hitting lowest since June 2016
    * Euro falls after hitting highest since August 2015
    * Solid U.S. data helps boost dollar

 (Updates to afternoon U.S. trading, adds data)
    By Dion RabouinNEW YORK, July 24 (Reuters) - The dollar inched up from its
lowest level in more than a year on Monday, assisted by
stronger-than-expected readings on the U.S. economy, as
investors kept a wary eye on developments concerning possible
ties between Russia and aides to U.S. President Donald Trump.
    The dollar rose from a 13-month low against a basket of six
major currencies touched in early trading.
    Jared Kushner, Trump's son-in-law and senior advisor, told
Senate investigators on Monday he had met with Russian officials
four times last year but said he did not collude with Moscow to
influence the 2016 U.S. election.[nL1N1KF06Y]
    The ongoing probes into the Russia matter by congressional
panels and a Justice Department special counsel, as well as weak
U.S. economic data and reduced inflation expectations, have
weighed on the dollar for much of the month. Market participants
say the investigations have been one factor slowing progress on
pushing through Trump's pro-growth agenda of tax cuts and
infrastructure spending.
    Speculators' bets on the dollar swung last week to a net
short, meaning more investors bet it will weaken than
strengthen, for the first time in more than a year, according to
calculations by Reuters and Commodity Futures Trading Commission
data. [IMM/FX]
    On Monday, Markit's manufacturing and services flash surveys
both showed the U.S. economy beating expectations.
    With the dollar having fallen below a number of important
technical levels last week, investors are now looking to reprice
the currency in the current environment, particularly on the
dollar/euro trade, analysts said.
    "When we start trading at this relatively unknown area for
the dollar and euro you're starting to look for ... whether
there could be a selloff and some profit taking," said John
Doyle, director of markets at Tempus Inc in Washington.
    "So today, even though data was second tier, it's not the
biggest thing in the world, it is a little bit better. It was an
opportunity to sell the euro, buy dollars and take a little
profit."
    The dollar index <.DXY> was last trading 0.15 percent higher
at 94.006.
    The euro has the largest weighting in the dollar index's
basket, at more than 50 percent.
    The European currency rose earlier on Monday to a 23-month
high against the dollar as investors remained bullish after the
latest business growth data for July pointed to only a mild
slowdown.
    The euro <EUR=> was last trading at $1.1643, down from a
high of $1.1684, its highest since August 2015.
    Investors will next look to further U.S. economic data,
including consumer confidence and second quarter gross domestic
product, and Wednesday's conclusion of the Federal Open Markets
Committee meeting and accompanying statement.

 (Editing by Bernadette Baum and Frances Kerry)
 ((Dion.Rabouin@thomsonreuters.com; +1 646 223 5946; Reuters
Messaging: dion.rabouin.reuters.com@reuters.net))

Keywords: GLOBAL FOREX/ (UPDATE 5)





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