US Dollar bulls retreat from 12-year high
The US currency extended losses after a report showed retail sales unexpectedly dropped last month.
By Bloomberg | Updated:
EDINBURGH: After pushing the dollar to its strongest level in 12 years, the bulls are in retreat. At least for now.
The US currency extended losses after a report showed retail sales unexpectedly dropped last month. It weakened versus the euro for the first time in three days as investors questioned whether gains of more than 2% this week will prompt the Fed Reserve to soften its stance on the timing of an interest-rate increase.
With the ECB embarking on its 60 billion-a-month ($63 billion) bond-buying programme, investors are debating whether the Fed will maintain its pledge to be patient on tightening policy.
The dollar weakened 1.2% to $1.0670 per euro, after touching $1.0495, the strongest level since January 2003. The US currency was 0.6% lower at 120.78 yen, after climbing to a 7 1/2-year high of 122.03 on Tuesday. The euro is poised for its biggest quarterly loss on record against the dollar after ECB President Mario Draghi reiterated on Wednesday the central bank’s commitment to spurring inflation. Its 12% decline this year eclipses the 11% slide in the third quarter of 2008.
The US currency extended losses after a report showed retail sales unexpectedly dropped last month. It weakened versus the euro for the first time in three days as investors questioned whether gains of more than 2% this week will prompt the Fed Reserve to soften its stance on the timing of an interest-rate increase.
With the ECB embarking on its 60 billion-a-month ($63 billion) bond-buying programme, investors are debating whether the Fed will maintain its pledge to be patient on tightening policy.
The dollar weakened 1.2% to $1.0670 per euro, after touching $1.0495, the strongest level since January 2003. The US currency was 0.6% lower at 120.78 yen, after climbing to a 7 1/2-year high of 122.03 on Tuesday. The euro is poised for its biggest quarterly loss on record against the dollar after ECB President Mario Draghi reiterated on Wednesday the central bank’s commitment to spurring inflation. Its 12% decline this year eclipses the 11% slide in the third quarter of 2008.
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