Dollar Falls to 16-Month Low Against Euro Amid Fed Speculation
Euro coins and a U.S. one dollar bill are arranged for a photograph in London. Photographer: Chris Ratcliffe/Bloomberg
The dollar fell to a 16-month low versus the euro on speculation the Federal Reserve will consider ways to support the U.S. economy as the end of its quantitative- easing program of asset purchases approaches in June.
The euro advanced for a fourth day against the yen before a report that economists say will show the region’s industrial orders increased, adding to evidence that the European Central Bank may raise interest rates. New Zealand’s dollar touched the highest level in three years before the central bank’s policy meeting tomorrow.
“They’ll stick to their QE2 phase-out and their rhetoric - - rates in the U.S. lower for longer,” said Kurt Magnus, executive director of currency sales in Sydney at Nomura Holdings Inc., Japan’s biggest brokerage. This “will see another sell-off in the dollar.”
The dollar depreciated 0.3 percent to $1.4687 as of 7:52 a.m. in Tokyo from $1.4644 in New York yesterday after reaching $1.4714, the lowest since December 2009. The greenback was at 81.45 yen from 81.55 yen. The euro rose to 119.60 yen from 119.42. The New Zealand dollar, known as kiwi, reached 80.77 U.S. cents, the highest since March 2008, from 80.57 cents.
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