Breaking News

FOREX -Dollar falls to end worst year since 2003, bitcoin soars

ForexDec 30, 2017 01:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
FOREX -Dollar falls to end worst year since 2003, bitcoin soars

* Dollar index touches three-plus month lows

* Euro earns for best year vs greenback in 14 years

* Bitcoin reverses recent losses, books 1,400 pct annual gain

* Financial markets to close on Monday on New Year's Day (Updates market action, adds graphic)

By Richard Leong

NEW YORK, Dec 29 (Reuters) - The dollar fell to its lowest in over three months against a basket of major currencies on Friday, marking its steepest annual drop since 2003, on doubts over durability of a pickup in U.S. economic growth in wake of last week's tax overhaul.

One of the most dramatic market developments in 2017 was the breath-taking rise of bitcoin BTC=BTSP and other cryptocurrencies. While they have pulled back at year-end, many of these digital currencies have surged in value this year.

The greenback may lag further against its peers in 2018 as investors expected other major central banks to reduce their stimulus while the Federal Reserve has signaled it would raise interest rates further, analysts said.

"The dollar will face more headwinds in 2018," said Chris Gaffney, President of World Markets at EverBank in St. Louis, Missouri. "The Fed won't be going at it alone in terms of taking off more gas from the stimulus pedal."

Bets the European Central Bank might consider raising interest rates by the end of 2018 due to evidence of higher inflation and business activity in the euro have lifted the euro, which was poised for its best yearly performance versus the greenback in 14 years.

The euro hit a three-month peak at $1.2028 EUR= , bringing its annual gain to 14.2 percent. It was last up 0.56 percent at $1.2008.

The euro's rally was a drag on the greenback in 2017. The index that tracks the dollar versus the euro and five other major currencies .DXY fell as low as 92.080, which the lowest since Sept. 22. It recorded a 9.8 percent annual decline, the biggest yearly loss since 2003.

The dollar also weakened against the yen JPY= , sterling GBP=D4 , Canadian dollar CAD=D4 , Swedish crown SEK= and Swiss franc CHF= , which are the other index components this year.

The dollar index was at a 14-year peak at the start of 2017 on hopes for U.S. President Donald Trump's pro-growth economic agenda. Barring the most dramatic rewrite of the U.S. tax code in 30 years enacted last week, Trump and Republican lawmakers have struggled to pass legislation.

Furthermore, many institutional investors close their books at the year-end, a deadline for taxation and performance reporting, a time seen leading to dollar selling pressure, analysts said.

Outside of traditional currencies, bitcoin and other cryptocurrencies rebounded after two days of losses tied partly to more regulators toughening rules on digital currencies in a bid to curb excessive speculation.

Bitcoin was last up 1.18 percent at $14,564.76 on the Bitstamp exchange. It was off the record highs near $20,000 touched 12 days ago but still headed for a gain of roughly 1,400 percent in 2017.

Financial markets around the world will be closed on Monday on New Year's Day. HOLIDAY ========================================================

Currency bid prices at 2:47PM (1947 GMT) Description



U.S. Close Pct Change


High Bid

Low Bid











+1.1937 Dollar/Yen






+112.9700 +112.4800 Euro/Yen






+135.5100 +134.5500 Dollar/Swiss







+0.9735 Sterling/Dollar GBP=






+1.3429 Dollar/Canadian CAD=






+1.2514 Australian/Doll AUD=






+0.7789 ar








+1.1672 Euro/Sterling







+0.8858 NZ Dollar/Dolar NZD=






+0.7085 Dollar/Norway







+8.1747 Euro/Norway







+9.8131 Dollar/Sweden







+8.1651 Euro/Sweden








<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Dollar Index v Euro Bitcoin's Banner 2017 World FX rates in 2017 Asset returns in 2017


FOREX -Dollar falls to end worst year since 2003, bitcoin soars

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email