Euro, pound sag on final day of year

[NEW YORK] The euro and pound sagged on the final day of the year on Thursday ahead of a long holiday weekend and next week's gush of US economic data.

After holding steady against the greenback for more than a week, the euro lost 0.6 per cent at US$1.0855 around 2200 GMT, amid mounting analyst predictions that the US currency will strengthen further in early 2016.

The euro also slipped 0.8 per cent on the yen to 130.59 yen.

The pound, which has steadily fallen since early November on rising doubts that the Bank of England will begin tightening monetary policy in the near future, lost another 0.5 per cent at US$1.4737. That nevertheless was still nearly two cents higher than the year's low struck in April.

Markets are "looking ahead to 2016 when the Federal Reserve has penciled in a series of dollar-bolstering interest rate rises," said forex market analyst Joe Manimbo of Western Union Business Solutions.

"2016 looks bright for the buck but it will need the cooperation of a better economic backdrop at home and abroad for it to sustain its run."

AFP