29.12.201702:20:00UTC+00Dollar Remains Near 1-Month Low, Commodity Currencies Firm

The dollar wavered near a one-month low versus a basket of currencies on Friday, as commodity currencies like the Australian and Canadian dollars were at two-month peaks due to strong energy and metal prices.

The dollar index against a basket of six major currencies was flat at 92.602 after losing 0.4 percent overnight to 92.573, its lowest since Nov. 27. The index was poised to lose 0.5 percent in December.

The greenback weakened in 2017 although the U.S. economy grew, the Federal Reserve tightened monetary policy and the United States enacted a major overhaul of its tax code.

Tensions arising from the Korean Peninsula, the Russian scandal surrounding U.S. President Donald Trump's election campaign, and low U.S. inflation were some of the factors that restrained the dollar from growing further in 2017 and are expected to continue adding pressure on the currency in 2018.

The dollar fell 0.1 percent to 112.735 yen. It had dropped to a nine-day low of 112.660 overnight, having moved as high as 113.750 on Dec. 12. It was on track to lose 3.5 percent against the Japanese currency this year.

The euro was stable at $1.1947 and near a one-month peak of $1.1959 notched the previous day. It has added 0.3 percent in December.

The common currency has gained 13.5 percent in 2017, its strongest annual gain since 2003. It was supported by factors including relief over the French elections and expectations for the ECB to normalize monetary policy while taking in stride political developments in Germany and Spain.

The Australian dollar was flat at $0.7795 having jumped to a two-month high of $0.7810 on Thursday. The Aussie is on track for a three percent monthly gain, buoyed by a rise in the prices of commodities like iron ore and copper.

The Canadian dollar extended its overnight rally to hit C$1.2555 per dollar, its highest since Oct. 20. The loonie is poised to gain 2.5 percent in December, lifted by a surge in crude oil prices.