 |
| The greenback headed for its first weekly loss in a month versus the franc amid speculation the Fed may introduce a third round of asset purchases, or quantitative easing, which would debase the U.S. currency. |
Washington Post
August 2, 2011Sept. 2 (Bloomberg) -- The dollar weakened versus the yen and Swiss franc as investors bet the Federal Reserve will take further steps to stimulate growth after U.S. employment unexpectedly stagnated in August.
The greenback headed for its first weekly loss in a month versus the franc amid speculation the Fed may introduce a third round of asset purchases, or quantitative easing, which would debase the U.S. currency.
The euro was poised for a five-day loss on concern Europe’s debt crisis is worsening. The Swiss currency rose versus all of its 16 most-traded peers on demand for a refuge from a slowing global economy.
“This number couldn’t get any worse; the non-farm payrolls report makes QE3 in September a near certainty,” said Kathy Lien, director of currency research at the online currency trader GFT Forex in New York. “This number was abysmally weak.”
The dollar fell 0.2 percent to 76.78 yen at 9:24 a.m. in New York, from 76.93 yesterday. It slumped as much as 3.1 percent versus the franc, the biggest drop since Aug. 9, the day the Fed pledged to keep interest rates near zero until 2013, to 77.12 centimes. The euro fell 2 percent to 1.1121 per franc.
The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six major U.S. trade partners including the euro and yen, gained 0.3 percent to 74.6659, compared with 74.479 yesterday. It touched 74.714 yesterday, the highest level since Aug. 12.
Read the entire article
No comments:
Post a Comment