The greenback was strengthening Monday in light action on speculation that the recent weakness in the currency had been overdone.
Dollars were trading for 117.52 Japanese yen, up from 116.92 yen late Friday. Euros were selling for $1.4053, down from $1.4135 last week, and the British pound was buying $2.0356 vs. $2.0422 previously. U.S. dollars were buying 98.6 Canadian cents, up from 98.2 cents late in the last session.
"We are seeing a rebound from an awfully strong surge in the euro, yen and the Canadian dollar recently," says Kurt Karl, chief U.S. economist at insurance company Swiss Re in New York.
He also says the relative lack of market participants, with a bond market and bank holiday in the U.S. and Thanksgiving in Canada, may be amplifying the effect of the turnaround in the dollar's value.
Karl says he expects the dollar weaken to about 95 yen but remain relatively stable against the euro, the pound and the Canadian dollar.
Meanwhile, the exchange-traded funds that track the various currencies were moving in line with action in the foreign exchange market.
CurrencyShares Euro Trust
was losing 0.5%, while the
CurrencyShares Japanese Yen Trust
was down 0.6%.
CurrencyShares Canadian Dollar Trust
was slipping 0.4%, and the
CurrencyShares British Pound Sterling Trust
was losing 0.3%.