SEOUL, South Korea (AP) — Global stocks mostly fell on Monday as the dollar weakened across the board, pinching the outlook for export-driven regions like Europe. The U.S. market remained closed for a holiday.
Britain’s FTSE 100 fell 0.1 percent to 7,768.12 while Germany’s DAX dropped 0.3 percent to 13,209.37 and France’s CAC 40 ended the day roughly unchanged at 5,519.41. U.S. markets remained closed for Martin Luther King Jr. Day.
The dollar fell in value against most currencies, extending its losses so far this year. Some economists attribute it to optimism about economic growth in regions like Europe and Japan, where central banks are getting closer to easing off their bond-buying stimulus programs, which have weighed on their currencies in the past. A stronger euro and yen, in turn, tend to weigh on many stocks in Europe and Japan, which are export-focused economies.
The dollar slipped to 110.56 Japanese yen on Monday from 111.04 yen the previous trading day. The euro strengthened to $1.2263 from $1.2199. The British pound hit $1.3820, its highest level against the dollar since before the Brexit referendum in June 2016, before edging back to $1.3800, up from $1.3725 the previous day.
Energy prices rose further as the fall in the dollar made crude oil cheaper for international investors. Benchmark U.S. crude rose 22 cents to $64.52 per barrel in electronic trading on the New York Mercantile Exchange. That is its highest in about three years. Brent crude, the international standard, gained 16 cents to $70.03 per barrel.