The dollar depreciates in the last business day of the year

© RIA Novosti / Natalia to Seliverstova photobacteria in the USA. Archival photoThe dollar depreciates in the last business day of the year© RIA Novosti / Natalia to Seliverstova the image Bank

The dollar declines against major world currencies on the last working day of the year, the dollar index (dollar to a basket of six currencies of countries — major U.S. trading partners) for the entire 2017 year showed the worst annual performance since 2003, according to the auction.

As of 19.31 GMT the dollar index has decreased on 0,42%, to 92,21 points. The Euro-dollar exchange rate has grown to of 1.2010 USD / EUR 1,1942 against the dollar in the previous session, the dollar against the yen dropped to 112,64 yen per dollar from 112,9 yen on the previous close. During the year, the dollar index has lost almost 10%.

Analysts at Reuters believe that the decline in the dollar index by the end of 2017 is due to two main factors. First, at the beginning of the year, the dollar rose significantly on expectations of traders that the new American President Donald trump will implement reforms aimed at GDP growth. But then investors began to doubt the promised execution plans, which had a negative impact on the dynamics of the dollar.

Second, global Central banks tightened their monetary policies, reducing the gap with the Federal reserve system (FRS) in the volumes released to the market liquidity.

«We are seeing a synchronized global growth, in particular the extraordinary growth in the Euro area that leads to the fact that the European Central Bank to gradually normalize its policy, which supports the Euro», — quotes Agency currency strategist at Societe Generale Alvin tan (Alvin Tan).

At the same time, on the eve of New year, trading volume significantly reduced. Market participants close out their positions and try not to open new until early next year.