Sept 30, 2010
The dollar headed for its biggest monthly loss since 2008 versus the euro as signs the U.S. economy is slowing damped demand for the nation’s assets.
The dollar was set for a quarterly drop versus all of its major counterparts before data forecast to show U.S. business activity and manufacturing slowed. Federal Reserve Chairman Ben S. Bernanke is scheduled to testify in Washington today amid speculation the central bank is preparing to buy more U.S. debt. The yen approached the strongest since the Bank of Japan intervened amid speculation exporters are bringing home overseas earnings before the end of the fiscal first half.
“America’s economic growth seems to be decelerating,” said Tsutomu Soma, a bond and currency dealer in Tokyo at Okasan Securities Co. “This is a negative factor for the dollar.”
The dollar was at $1.3602 per euro at 1:28 p.m. in Tokyo from $1.3627 in New York yesterday, when it touched $1.3647, the weakest level since April 15. The greenback has fallen 6.7 percent this month versus the euro, the most since December 2008.