Bloomberg (24/10) -- The dollar slid to a two-year low against the euro
as concern that U.S. growth was hampered by a government shutdown
earlier this month fueled bets the Federal Reserve will delay slowing
its stimulus program until next year. The greenback cut losses
against the yen and the European currency even as more Americans than
forecast filed jobless-benefit applications last week. The euro trimmed a
gain versus Japan’s currency after industry data showed manufacturing
and services output in the currency bloc expanded this month less than
forecast. Norway’s krone advanced after the central bank said the
currency has weakened since its last policy decision and left its key
interest rate unchanged.“March, June 2014-zone tapering still
remains intact,” Neil Jones, head of hedge-fund sales at Mizuho Bank
Ltd. in London, said of outlook for reducing Fed stimulus. The
employment data “could have been worse, so there’s probably a little bit
of dollar demand kicking it. At the same time, it’s going to do nothing
to adjust tapering expectations.” The dollar depreciated 0.2
percent to $1.3801 per euro at 10:53 a.m. New York time and reached
$1.3825, the weakest since November 2011. It was little changed at 97.34
yen after declining 0.2 percent earlier today and touching 97.16
yesterday, the lowest level since Oct. 9. Europe’s shared currency rose
0.1 percent to 134.33 yen. The greenback may fall to $1.40
versus Europe’s shared currency by the end of year, Jones said in a
phone interview. The median year-end euro forecast in a Bloomberg survey
of economists and analysts is $1.33.25 Oktober 2013
Dollar Weakens to Two-Year Low Amid Concern on Fed
Bloomberg (24/10) -- The dollar slid to a two-year low against the euro
as concern that U.S. growth was hampered by a government shutdown
earlier this month fueled bets the Federal Reserve will delay slowing
its stimulus program until next year. The greenback cut losses
against the yen and the European currency even as more Americans than
forecast filed jobless-benefit applications last week. The euro trimmed a
gain versus Japan’s currency after industry data showed manufacturing
and services output in the currency bloc expanded this month less than
forecast. Norway’s krone advanced after the central bank said the
currency has weakened since its last policy decision and left its key
interest rate unchanged.“March, June 2014-zone tapering still
remains intact,” Neil Jones, head of hedge-fund sales at Mizuho Bank
Ltd. in London, said of outlook for reducing Fed stimulus. The
employment data “could have been worse, so there’s probably a little bit
of dollar demand kicking it. At the same time, it’s going to do nothing
to adjust tapering expectations.” The dollar depreciated 0.2
percent to $1.3801 per euro at 10:53 a.m. New York time and reached
$1.3825, the weakest since November 2011. It was little changed at 97.34
yen after declining 0.2 percent earlier today and touching 97.16
yesterday, the lowest level since Oct. 9. Europe’s shared currency rose
0.1 percent to 134.33 yen. The greenback may fall to $1.40
versus Europe’s shared currency by the end of year, Jones said in a
phone interview. The median year-end euro forecast in a Bloomberg survey
of economists and analysts is $1.33.
