Biz-Econ

Dollar pushes higher after US consumer confidence gain

The dollar headed higher against the euro and pound Tuesday, helped by a modest rebound in US consumer confidence this month.But the greenback remained range-bound, trading at $1.0921 against the euro, amid a wait for more US economic data that could give direction on the Federal Reserve`s plans for interest rate hikes in 2016. Supporting a more bullish outlook, the Conference Board`s consumer confidence index rose to 96.5 in December from 92.6 in November, with survey responses showing an improvement especially in consumers` assessment of the current situation in the economy. Analysts are still split on how steep the federal funds rate curve will be, but most see Fed policy to move even further away from the easing by other main central banks, aside from the Bank of England. "With the Fed lining up as the only central bank firmly on the hawkish end of the scale, this will probably bode well for the US dollar," said Ilya Spivak of DailyFX. "The euro seems most vulnerable as the ECB (European Central Bank) ramps up stimulus efforts to beat back deflation fears."Meanwhile Russia`s battered ruble continued its slide Tuesday on the back of low oil prices, reaching a new 2015 low against the dollar. The Russian currency fell to 72.85 against the dollar, before recovering later to 72.16. The euro meanwhile passed the 80 ruble barrier, hitting 80.02 before the Russian currency recovered to 78.88. After another fall Monday, China`s yuan held steady at 6.483 per dollar.