Ye Xie and Lukanyo Mnyanda
Tuesday, Sept 8th, 2009
The dollar declined to the lowest level this year against the euro as equity markets rose on speculation the global recession is easing, sapping demand for the currency as a haven.
The greenback also fell the most against the currencies of six major U.S. trading partners since July as the dollar became the cheapest funding currency in the London interbank lending market. The yen gained against the dollar as Japan’s corporate bankruptcies dropped for the first time in three months. The pound strengthened as U.K. factory output rose three times as much as economists forecast.
“A risk-positive environment is negative to the dollar largely because capital is leaving the U.S.,” said David Powell, a currency strategist in London at Bank of America Corp., in an interview on Bloomberg Television. “Global investors become more bullish on the world economy.”
The dollar depreciated 0.9 percent to $1.4467 per euro at 9:49 a.m. in New York, from $1.4332 yesterday, after earlier reaching $1.4507, the weakest level since Dec. 18. The U.S. currency slipped 0.8 percent to 92.30 yen, from 93.08. The euro was little changed at 133.50 yen, compared with 133.39.
This article was posted: Tuesday, September 8, 2009 at 10:31 am