The dollar fell against most of its major peers before a report that’s predicted to show new home sales in the U.S. slumped in May, bolstering the case for the Federal Reserve to keep interest rates at a record low.
The dollar weakened to an almost one-week low versus the euro before Fed policy makers begin a two-day meeting amid signs the U.S. economy is slowing. The 17-nation currency rose as European leaders said a Greek default can be avoided and before Prime Minister George Papandreou faces a confidence vote today. It pared gains after a report showed German investor confidence fell.
“The U.S. is in a soft patch and the market has gotten itself pretty bearish,” said Geoff Kendrick, head of European foreign-exchange strategy at Nomura International Plc in London. “You can see that in the two-year Treasury yield which is just ridiculously low. For Europe the main thing in the market today is the Greek confidence vote.”
The dollar depreciated 0.3 percent to $1.4346 per euro as of 6:56 a.m. in New York after reaching $1.4384, the weakest since June 15. The U.S. currency traded little changed at 80.19 yen, from 80.25 yesterday. The euro was 0.2 percent stronger at 114.90 yen.
The pound weakened 0.3 percent to 88.58 pence per euro and was little changed at $1.6195 as Bank of England Markets Director Paul Fisher said further bond purchases to stimulate the economy are possible.
The dollar weakened to an almost one-week low versus the euro before Fed policy makers begin a two-day meeting amid signs the U.S. economy is slowing. The 17-nation currency rose as European leaders said a Greek default can be avoided and before Prime Minister George Papandreou faces a confidence vote today. It pared gains after a report showed German investor confidence fell.
“The U.S. is in a soft patch and the market has gotten itself pretty bearish,” said Geoff Kendrick, head of European foreign-exchange strategy at Nomura International Plc in London. “You can see that in the two-year Treasury yield which is just ridiculously low. For Europe the main thing in the market today is the Greek confidence vote.”
The dollar depreciated 0.3 percent to $1.4346 per euro as of 6:56 a.m. in New York after reaching $1.4384, the weakest since June 15. The U.S. currency traded little changed at 80.19 yen, from 80.25 yesterday. The euro was 0.2 percent stronger at 114.90 yen.
The pound weakened 0.3 percent to 88.58 pence per euro and was little changed at $1.6195 as Bank of England Markets Director Paul Fisher said further bond purchases to stimulate the economy are possible.
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