Jul 30, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Dollar Declines From One-Week High on Fed-Tapering Speculation

August 15, 2013

Aug. 15 (Bloomberg) -- The dollar declined from a one-week high as speculation the Federal Reserve will begin reducing its stimulus measures as soon as next month weighed on demand for assets denominated in the U.S. currency.

The Bloomberg U.S. Dollar Index rose earlier as jobless claims unexpectedly dropped last week to the lowest level in almost six years, Labor Department data showed. The U.S. currency reversed gains against the euro and yen as stocks fell and Treasury yields touched two-year highs. The pound climbed to an eight-week high against the dollar after U.K. retail sales rose more than forecast. The Fed has been buying $85 billion of bonds a month to support the economy and cap borrowing costs.

"The selling of the dollar is consistent with the weakness in the equity market and the bounce off the yield highs in bonds," Richard Gilhooly, an interest-rate strategist at TD Securities Inc. in New York. "The better data today is misleading."

The Bloomberg U.S. Dollar Index fell 0.4 percent to 1,020.87 at 2:17 p.m. New York time after earlier rising 0.4 percent to 1,028.72, the strongest since Aug. 5.

The dollar dropped 0.6 percent to $1.3340 per euro and fell 0.8 percent to 97.34 yen. Japan’s currency added 0.2 percent to 129.85 per euro.

Benchmark U.S. 10-year note yields were at 2.74 percent after rising to 2.82 percent, highest since August 2011. The Standard & Poor’s 500 Index of stocks plunged 1.6 percent.

 

Rupiah, Pound

 

The Indonesian rupiah fell to its weakest level in more than four years after the country’s central bank kept its reference rate on hold and a report showed foreign-exchange reserves fell to the lowest level since 2010. The currency depreciated 0.6 percent to 10,350 per dollar after earlier falling to 10,353, its lowest since June 2009.

Britain’s pound has strengthened 3.6 percent in the past month versus the dollar as reports showed purchasing managers indexes of manufacturing, services and construction all improved in July while house prices increased. The economy expanded by 0.6 percent in the second quarter.

The U.K. currency gained 1 percent to $1.5649 after advancing to $1.5651, the highest since June 19. Sterling appreciated 0.3 percent to 85.26 pence per euro after reaching 85.05 pence, the strongest since July 3.

READ MORE
Previous 1 2 3 ... Next

See Comments

RELATED TOPICS: Power Hour - Business

 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

 
 
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions