Dollar Drops as U.S. Consumer Sentiment Worsened Prior an industrial report stated that economists will be showing that the U.S. consumer sentiment worsened this month, the U.S. dollar reached a two year low against the euro, fueling speculation the Federal Reserve will delay in cutting stimulus. U.S. policy makers will delay the monthly bond purchases tapering till March. The U.S. dollar headed for its second weekly drop versus the yen. With a report that showed consumer confidence increasing this month, Sweden’s krona appreciated. After the central bank governor stated he is concerned that higher interest rates would strengthen the currency, New Zealand’s dollar fell against all but one of its 16 major counterparts. According to Lee Hardman, a foreign-exchange strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London, there is still a gradual weakening of the U.S. dollar, influencing people to push back their expectations for the Fed tapering. Approaching the year end, there’s some scope for further downside in the dollar, given that the Fed looks unlikely to begin tapering this year, said Lee Hardman. At 6:45 a.m. New York time, the greenback remained almost unchanged at $1.3796 per euro, after depreciating to the weakest level since November 2011 to $1.3832. Furthermore, the U.S. dollar, after reaching 96.94, the lowest level since Oct. 9, was able to climb at 97.23 yen. This week the greenback dropped 0.5 percent versus the yen and 0.8 percent against the euro. The euro remained almost unchanged at 134.13 yen.
Posted on: Fri, 25 Oct 2013 14:10:15 +0000
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