USD ended the last week of 2015 on a higher note. USD Index (DXY), which tracks the movement of the USD against six major currencies, gained by 0.73% on weekly basis and closed at levels of 98.68. USD started the week on flattish note amid low trading volume as financial markets toned down business in the final week of the year 2015. USD received a boost in the later part of the week after the release of upbeat U.S. economic data.
U.S. Bureau of Economic Analysis reported on Tuesday that the goods trade deficit widened less than expectation. Data showed that goods trade deficit widened to USD 60.50 billion in the month of November from USD 58.41 billion in October against the expectation of a trade deficit to widen to USD 60.90 billion.
The Conference Board reported that its consumer confidence index rose to 96.5 in the month of December against the expectation of a rise to 93.8, followed by 92.6 in November.
U.S. National Association of Realtors on Wednesday reported that its pending home sales index declined by 0.9% in the month of November against the expectations for a gain of 0.5%, followed by a rise of 0.4% in October.
U.S. Department of Labour on Thursday reported that number of individuals filing for initial jobless benefits in the week ended 26th December rose by 20,000 to 287,000 from the previous week’s total of 267,000 against the expectation of a rise by 3,000 to 270,000.
Euro depreciated by 0.95% last week against the USD. Euro started the week on a higher note against USD but later came under pressure because of lacklustre Spanish data as well as post-election uncertainty. Data showed that Spain’s consumer price index fell by 0.3% in the month of November against the expectations of a decline of 0.1%, followed by 0.4% rise in October.
Brazilian Real depreciated by 0.42% last week against USD on the concern over President Dilma Rousseff’s plans to tackle a mounting fiscal deficit and the impact of a massive debt repayment to state banks. Newly appointed Finance Minister Nelson Barbosa said last week that the government has no plans to relax next year’s fiscal target, without specifying how his team will achieve its goals if lawmakers block government legislation to raise taxes.
Russian Ruble depreciated by 2.57% last week against USD. Ruble came under pressure as oil prices declined on concerns over a global supply glut and the lack of demand. U.S. Energy Information Administration on Wednesday reported that U.S. Crude Oil Inventories rose unexpectedly last month by 2.629M from -5.877M in October, against the expectation of a decline of -2.457M.
Asian currencies were largely mixed against the USD last week. Australian Dollar appreciated by 0.32%, New Zealand Dollar appreciated by 5.36%, Japanese Yen depreciated by 0.20%, South Korean Won depreciated by 0.23%, Philippines Peso appreciated by 0.35%, Indonesian Rupiah depreciated by 1.44%, Indian Rupee appreciated by 0.11% against USD and appreciated by 0.61% against Euro, Chinese Yuan depreciated by 0.27%, Malaysian Ringgit appreciated by 0.12% and Thai Baht appreciated by 0.05%.
Yen depreciated against the USD last week as data released showed that Japan’s industrial production declined 1.0% in the month of November against the expectations for a 0.6% fall and after an increase of 1.4% in October. Japan’s retail sales declined by an annual rate of 1.0% in the month of November against the expectations of a decline of 0.6%, followed by 1.8% rise in October.