By Kristine Aquino and Masaki Kondo -
Oct 31, 2012 8:54 AM GMT+0800
The U.S. dollar weakened versus most
of its 16 major peers on speculation reports tomorrow will show
improvement in Chinese manufacturing, brightening the global
economic outlook and damping demand for haven assets.
The greenback remained lower after dropping yesterday against the yen as Asian stocks rose and as U.S. capital markets prepared to reopen today after Atlantic storm Sandy swept through New York. Demand for the euro was tempered before data that may show unemployment in Europe climbed to a record last month, adding to signs the debt crisis is hurting growth.
“We should start to see now further evidence that we’ve had a bottom on the growth profile, and we should see an improvement in PMI,” said Imre Speizer, a strategist in Auckland at Westpac Banking Corp., referring to China’s economy and the nation’s manufacturing index. “It would probably be a negative for the U.S. dollar.”
The dollar bought 79.62 yen as of 9:29 a.m. in Tokyo after falling 0.2 percent yesterday. It fetched $1.2960 per euro following a 0.4 percent decline in New York, the biggest drop since Oct. 17. Europe’s shared currency was little changed at 103.20 yen after rising 0.2 percent to 103.18 yesterday.
The dollar has strengthened 2.1 percent against its Japanese counterpart this month. It has declined 0.8 percent versus the euro since Sept. 30.
The MSCI Asia Pacific Index (MXAP) of shares climbed 0.4 percent.
A separate measure by HSBC Holdings Plc and Markit Economics probably rose to 49.1 in the same period from 47.9 last month, economists said in another poll before tomorrow’s release. That would confirm a preliminary reading released Oct. 24. For both indexes, 50 is the dividing line between contraction and expansion.
U.S. equity markets will resume trading today, according to statements by NYSE Euronext, Nasdaq OMX Group Inc. and Bats Global Markets Inc. The New York Stock Exchange’s headquarters is running on backup power and will keep using it if necessary all week, Larry Leibowitz, the chief operating officer, said in a phone interview. Fixed-income trading, halted at noon on Oct. 29, will also reopen, under a recommendation by the Securities Industry and Financial Markets Association.
The jobless rate in the euro area probably climbed to an all-time high of 11.5 percent in September, according to economists surveyed by Bloomberg before the European Union’s statistics office releases the data today.
“Economic growth is going to be pretty poor and I think for that reason interest rates there are going to remain low,” Westpac’s Speizer said of the euro region’s economic outlook. “Slow growth, low interest rates -- you cannot get too excited about the euro currency. I think it will be an underperformer over the next year.”
The European Central Bank lowered the region’s key policy rate to a record 0.75 percent in July and has since kept it unchanged.
To contact the reporters on this story: Kristine Aquino in Singapore at kaquino1@bloomberg.net; Masaki Kondo in Singapore at mkondo3@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
The greenback remained lower after dropping yesterday against the yen as Asian stocks rose and as U.S. capital markets prepared to reopen today after Atlantic storm Sandy swept through New York. Demand for the euro was tempered before data that may show unemployment in Europe climbed to a record last month, adding to signs the debt crisis is hurting growth.
“We should start to see now further evidence that we’ve had a bottom on the growth profile, and we should see an improvement in PMI,” said Imre Speizer, a strategist in Auckland at Westpac Banking Corp., referring to China’s economy and the nation’s manufacturing index. “It would probably be a negative for the U.S. dollar.”
The dollar bought 79.62 yen as of 9:29 a.m. in Tokyo after falling 0.2 percent yesterday. It fetched $1.2960 per euro following a 0.4 percent decline in New York, the biggest drop since Oct. 17. Europe’s shared currency was little changed at 103.20 yen after rising 0.2 percent to 103.18 yesterday.
The dollar has strengthened 2.1 percent against its Japanese counterpart this month. It has declined 0.8 percent versus the euro since Sept. 30.
The MSCI Asia Pacific Index (MXAP) of shares climbed 0.4 percent.
China PMI
Figures due tomorrow may show a manufacturing gauge based on a survey of purchasing managers in China, the world’s second- biggest economy, climbed to 50.2 this month from 49.8 in September, according to the median estimate of economists surveyed by Bloomberg News.A separate measure by HSBC Holdings Plc and Markit Economics probably rose to 49.1 in the same period from 47.9 last month, economists said in another poll before tomorrow’s release. That would confirm a preliminary reading released Oct. 24. For both indexes, 50 is the dividing line between contraction and expansion.
U.S. equity markets will resume trading today, according to statements by NYSE Euronext, Nasdaq OMX Group Inc. and Bats Global Markets Inc. The New York Stock Exchange’s headquarters is running on backup power and will keep using it if necessary all week, Larry Leibowitz, the chief operating officer, said in a phone interview. Fixed-income trading, halted at noon on Oct. 29, will also reopen, under a recommendation by the Securities Industry and Financial Markets Association.
Worst Performers
The dollar and euro have both declined 2.1 percent this year, the second-worst performances among the 10 developed- nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The yen posted the biggest drop, falling 5.8 percent in the same period.The jobless rate in the euro area probably climbed to an all-time high of 11.5 percent in September, according to economists surveyed by Bloomberg before the European Union’s statistics office releases the data today.
“Economic growth is going to be pretty poor and I think for that reason interest rates there are going to remain low,” Westpac’s Speizer said of the euro region’s economic outlook. “Slow growth, low interest rates -- you cannot get too excited about the euro currency. I think it will be an underperformer over the next year.”
The European Central Bank lowered the region’s key policy rate to a record 0.75 percent in July and has since kept it unchanged.
To contact the reporters on this story: Kristine Aquino in Singapore at kaquino1@bloomberg.net; Masaki Kondo in Singapore at mkondo3@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
Posts
0 comments:
Post a Comment