A gauge of the dollar consolidated amid thin liquidity on the last trading day of the year. The New Zealand dollar and Swiss Franc rose while other currencies traded in tight ranges.
The Bloomberg Dollar Spot Index was little changed; the index has lost 2.8% this year, on track for its worst annual loss since 2020 on expectations the Federal Reserve will cut interest rates aggressively in 2024.
"It's the last trading day of 2023, and volumes are likely to be very light ahead of the extended New Year's day weekend," Alvin T. Tan, head of Asia FX strategy at RBC Capital Markets, wrote in a note. The dollar is "ending the year in a poor state," he said.
NZD/USD gained 0.3% to 0.6353.
USD/CHF fell 0.2% to 0.8434; pair is set for its biggest yearly loss since 2010.
USD/JPY steadied at 141.30; pair is set for a third year of gains amid a wide interest-rate gap between the Bank of Japan and the Fed.
Source: Bloomberg
