Oct 2, 2010
The dollar fell against all of its most-traded counterparts as Federal Reserve officials made statements encouraging speculation the central bank will increase purchases of U.S. debt to keep interest rates low.
The greenback declined for the third consecutive week against the euro to a six-month low as rhetoric from the Fed damped demand for U.S. assets. Asian currencies and the Australian and New Zealand dollars had five-day gains against the U.S. dollar as investors searched for higher yields. The yen strengthened 1.1 percent against the dollar as Japanese officials said they are prepared to sell more of the nation’s currency to prevent a return to a 15-year high.
“The dollar seems to be the ugliest girl at the dance,” said Lane Newman, director of foreign exchange at ING Groep NV in New York. “The main catalyst for dollar weakness would be communication from the Federal Open Market Committee this week that quantitative easing is on the table and the euro has gone from the worst currency to own to the best on the back of ‘anything but the big dollar.’”
This article was posted: Saturday, October 2, 2010 at 2:49 am