As the year nears its end, the investors are beginning to cash profits, supporting the US dollar

The dollar gained ground versus the euro yesterday, as a weaker tone in equity and commodity markets reinforced support for low-yielding currencies.

• The rally in equity and commodity markets stalled yesterday, encouraging investors to pare back exposure to risk and buy back the low-yielding greenback.
  
• Analysts said some traders were already taking risk off the table heading into the year end, wary that the rally in risky assets may have been overdone and that economic data has not been as rosy as forecast.
  
• Traders also said that the bout of dollar buying this week has been partly seasonal with demand coming from overseas corporates ahead of the year-end in addition to investors closing their dollar shorts.
  
• The currency pair remains trapped in a stalemate between support at $1.4800 and resistance at $1.5050, with trader's sensitive of taking the price higher following recent efforts by the ECB to talk the single currency down.