US dollar gains on reduced Ukraine-Russia tensions, US housing data

The U.S. dollar rose against a basket of major currencies on Monday on reduced concerns over Russia and Ukraine and positive U.S. housing data.

Tensions between Russia and Ukraine were viewed as less heated following talks among Russia, Germany, France and Ukraine on Sunday. Russia said all objections to it sending a humanitarian convoy to Ukraine had been resolved, but no progress was made toward a ceasefire between government and rebel forces in the east of the country.

The dollar sold off on Friday against the yen and Swiss franc on risk aversion after Ukraine's president said artillery had destroyed part of a Russian armored column that had crossed into Ukraine during the night. The yen and Swiss franc tend to benefit in times of global tension because of their deep liquidity.

Data showing U.S. home builder sentiment rose in August to its highest since January as labor market conditions improved also supported the dollar. The NAHB/Wells Fargo Housing Market index rose to 55 in August from 53 in July, the group said. It was the third straight monthly gain and topped the mean estimate of analysts polled by Reuters for a reading of 53.


The euro was last down 0.30 percent against the dollar under $1.34. The dollar was last up 0.30 percent against the Japanese yen over 102 yen, and was up more than 0.4 percent against the Swiss franc near 0.91 franc.

The U.S. dollar index, which measures the dollar against a basket of six major currencies, was last up almost 0.2 percent near 81.58.

The British pound was last up more than 0.1 percent against the dollar above $1.67 following comments from Bank of England Governor Mark Carney that he would not have to wait for real wages to turn positive before raising interest rates.

Yields on U.S. Treasuries rose, supporting the dollar, after they plunged on Friday on worries about Ukraine and Russia.

Benchmark 10-year U.S. Treasury notes were last down 11/32 in price to yield 2.38 percent, from 2.35 percent late on Friday.

—By Reuters