Summary dollar stabilized Monday against other major currencies following a 10-week rally.
NEW YORK (AFP) - The dollar stabilized Monday against other major currencies following a 10-week rally while the euro edged higher after the European Central Bank suggested a long stretch of easy money.
The dollar had surged last week on the Federal Reserve s signals of higher-than-expected interest rates when it begins to raise them from near-zero next year, and Scotland s decision to stay in the United Kingdom.
Data released Monday showed an unexpected fall in US existing-home sales in August, after four straight months of gains, dampening the outlook for a Fed rate hike.
The National Association of Realtors said that despite the 1.8 percent drop in August, US sales activity remained stronger than earlier in the year.
The euro rebounded from a 14-month lows against the dollar as traders digested a speech by European Central Bank chief Mario Draghi to the European Parliament.
Draghi dismissed market disappointment about demand from banks for a new lending program launched last week, saying it was on track to pump more liquidity into the financial system but needed time to take full effect.
The ECB chief notably signaled that the eurozone recovery was sputtering and the central bank would keep its accommodative monetary policy in place for some time to come.
The euro ended the session at $1.2850, rebounding from $1.2816 earlier in the day, its lowest level since July 2013.
