The dollar was steady Monday following its longest weekly winning streak in decades.
The dollar index, which measures the U.S. currency’s performance against a basket of major rivals, was holding near its highest in two years, having risen ten weeks in a row.
A furious rally versus yen lost a bit of steam today, but the dollar was able to extend recent gains against the euro as remarks from European Central Bank President Mario Draghi fueling concerns about the euro zone economy.
Speaking to lawmakers, Draghi said the euro zone recovery “is losing momentum” and that risks for the economy were “to the downside.”
He opened the door for further stimulus by acknowledging euro zone inflation is hardly picking up.
“Therefore, we stand ready to use additional unconventional instruments within our mandate, and alter the size and / or the composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation,” Draghi said.
The dollar eased back below Y109 versus the yen, down slightly from a 6-year peak seen Friday.
Mid-day gains saw the dollar advance to $1.2820 versus the euro, the best in 14 months.
There was little movement near $1.63 against the sterling as traders continued to assess Scotland’s decision to stay with the United Kingdom.
In economic news from the U.S., the National Association of Realtors released a report on Monday showing an unexpected drop in U.S. existing home sales in the month of August.
NAR said existing home sales fell 1.8 percent to a seasonally adjusted annual rate of 5.05 million in August from a downwardly revised 5.14 million in July.