The dollar traded near the weakest in 15 years against the yen and a record low versus the Swiss franc on speculation Federal Reserve officials will reiterate they are poised to increase bond purchases to support growth.
The Dollar Index, which tracks the greenback against major trading partners, was near its lowest since January after the Fed said yesterday in minutes of its September meeting that it was set to resume bond purchases “before long.” The pound fell to its weakest in five months versus the euro after a U.K. report showed consumer confidence plummeted to an 18-month low.
“The Dollar Index will remain under pressure,” said Kurt Magnus, executive director of foreign exchange sales at Nomura Australia. A second round of quantitative easing “is imminent and the minutes suggest that it will be large and aggressive.”
The dollar traded at 81.80 yen as of 9:32 a.m. in Tokyo, from 81.72 yesterday in New York. It reached 81.39 on Oct. 11, the lowest level since April 1995. The euro fetched $1.3938 from $1.3924 yesterday and touched $1.4029 on Oct. 7, the most since Jan. 28. The yen traded at 114.02 against the euro from 113.79. The pound was at 88.28 pence per euro from 88.08 yesterday, and fell as low as 88.31, the weakest since April 19.
The Dollar Index, used by IntercontinentalExchange Inc. to track the greenback against currencies including the euro, yen and Swiss franc, slid 0.2 percent to 77.246 today. It touched 76.906 on Oct. 7, the lowest level since Jan. 15.
The index will decline to 76.70 this week, corresponding to the euro advancing through $1.41, Magnus said.
The gauge of the U.S. currency has fallen 3.9 percent since Sept. 21, when the central bank said in a statement following its policy meeting that it’s prepared “to provide additional accommodation if needed” to support the recovery.
Sumber : BLOOMBERG.COM