The dollar fell against the euro, Swiss franc and yen as investors bet the Federal Open Market Committee will repeat its pledge to maintain stimulus measures to revive confidence in the U.S. economy.
Canada’s currency snapped a seven-day losing streak as commodities reversed earlier declines. U.S. Treasuries dropped. The yen and the franc strengthened, pushing the Swiss currency to records against the dollar and euro, as investors sought stability amid a U.S. economic slowdown and the euro region’s debt crisis.
“The question for the dollar is what will the Fed do, if anything,” said Brian Kim, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford Connecticut. “The safe-haven Swiss and yen just keep getting better against the dollar and euro.”
The yen strengthened 0.7 percent to 77.25 per dollar at 10:16 a.m. in New York, climbing for a third straight day. The dollar depreciated 0.5 percent to $1.4251 per euro, while the shared European currency was little changed at 110.18 yen.
The franc advanced as much as 2.1 percent to a record 1.0479 per euro before trading at 1.0531. It strengthened 2.5 percent to touch an all-time high of 73.63 centimes per dollar.
Implied volatility, a key gauge of option prices that tends to rise in times of uncertainty, for euro-Swiss franc one-month options climbed to touch more than 25 percent for the first time. The equivalent dollar-franc volatility rate reached 19.9 percent, the most since January 2009.
Canada’s currency snapped a seven-day losing streak as commodities reversed earlier declines. U.S. Treasuries dropped. The yen and the franc strengthened, pushing the Swiss currency to records against the dollar and euro, as investors sought stability amid a U.S. economic slowdown and the euro region’s debt crisis.
“The question for the dollar is what will the Fed do, if anything,” said Brian Kim, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford Connecticut. “The safe-haven Swiss and yen just keep getting better against the dollar and euro.”
The yen strengthened 0.7 percent to 77.25 per dollar at 10:16 a.m. in New York, climbing for a third straight day. The dollar depreciated 0.5 percent to $1.4251 per euro, while the shared European currency was little changed at 110.18 yen.
The franc advanced as much as 2.1 percent to a record 1.0479 per euro before trading at 1.0531. It strengthened 2.5 percent to touch an all-time high of 73.63 centimes per dollar.
Implied volatility, a key gauge of option prices that tends to rise in times of uncertainty, for euro-Swiss franc one-month options climbed to touch more than 25 percent for the first time. The equivalent dollar-franc volatility rate reached 19.9 percent, the most since January 2009.
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