White House Russia sanctions force dollar down

Investing.com – The U.S. dollar fell on Friday, as did the ruble, as White House sanctions against Russia over alleged hacking during the presidential election hammered forex markets.

The euro traded at 1.0549 from $1.0556, though it earlier in the day traded at its highest level in nearly two weeks, due to computer trading.

“Surpassing the $1.05 level triggered substantial algorithm orders,” said Ipek Ozkardeskaya, senior market analyst at London Capital, in an investor note, obtained by Investing.com. “Thin holiday volumes aggravated the quake.”

The euro is down 2.9% in 2016 against the dollar.

Experts expect the currency to fall even more in the new year.

The ICE Dollar Index dropped 0.5% to 102.13 on Friday, leaving it on track for a 3.5% gain in 2016, its fourth straight year of advances.

The WSJ Dollar index which measures the greenback against a broader basket of rivals, dropped 0.3% to 92.73.

The dollar traded against the yen at ¥116.76 from ¥116.37. Though the dollar has fallen 3.3% against the yen in 2016, it has risen more than 15% against the currency over the past three months.

The ruble dipped on Friday as diplomatic tensions between the U.S. and Russia grew. The ruble traded at 61.04 to the dollar, compared with 60.20 late Thursday, a move of about 1.4%.

The British pound was at $1.2376, up from $1.2263. Sterling has slipped nearly 17% this year as a consequence of the United Kingdom’s vote to leave the European Union this summer.