By Kristine Aquino and Lucy Meakin -
Oct 3, 2012 4:27 PM GMT+0800
The euro rose for a fifth day against
the yen before European Central Bank policy makers meet
tomorrow.
The 17-nation euro reversed declines against the dollar. The ECB and the Bank of England will hold policy meetings tomorrow. The yen touched a week-low against the dollar before Bank of Japan (8301) officials begin a two-day meeting tomorrow. Australia’s dollar slid to the least in almost a month after the nation recorded its widest trade deficit since 2008.
The euro was little changed at $1.2926 at 9:17 a.m. London time after touching $1.2878. The yen was also little changed, at 101.10 per euro and 78.21 per dollar. The Japanese currency earlier touched 78.31 per dollar, the weakest since Sept. 21.
ECB officials meet tomorrow in Ljubljana, Slovenia, with policy makers expected to keep the bank’s benchmark interest rate unchanged at a record-low 0.75 percent, according to a Bloomberg survey of economists.
The euro has weakened 4.7 percent in the past 12 months, according to Bloomberg Correlation Weighted Indexes. The yen declined the most among the 10 developed-nation currencies tracked by the gauge, falling 6.6 percent in the period. The dollar lost 2.8 percent.
Australia’s dollar sank today after data showed the nation’s trade deficit for August was almost three times wider than the median forecast of economists. Imports exceeded exports by A$2.03 billion ($2.07 billion) in August, compared with a revised A$1.53 billion shortfall in July.
“The Reserve Bank will cut again probably next month,” said Joseph Capurso, a strategist at Commonwealth Bank of Australia (CBA) in Sydney. “I don’t think the RBA will cut as much as the market is expecting, but those expectations have been one thing that has pushed the Aussie down.”
The so-called Aussie dropped as much as 0.6 percent to $1.0202, the weakest level since Sept. 6.
The yen dropped for a fourth day against the dollar, the longest runs of declines since Aug. 17, before the BOJ begins its policy meeting tomorrow. Officials expanded the Japanese central bank’s asset-purchase program last month in a bid to stimulate economic growth.
Japan’s new Economy Minister Seiji Maehara this week pledged a closer watch over the BOJ to ensure it meets its 1 percent inflation goal, adding that purchases of foreign bonds may be a powerful tool for easing.
The dollar may climb toward its highs in August and September versus the yen, MacNeil Curry, New York-based chief rates and currencies technical strategist at Bank of America Corp. wrote in a report yesterday.
A break above resistance at 78.18 to 78.24 “reinvigorates the uptrend” for dollar-yen, Curry wrote. Resistance is a level where orders to sell may be clustered. The greenback peaked at 79.66 yen on Aug. 20 and rose to as high as 79.22 on Sept. 19, according to data compiled by Bloomberg.
To contact the reporters on this story: Kristine Aquino in Singapore at kaquino1@bloomberg.net; Lucy Meakin in London at lmeakin1@bloomberg.net.
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net.
The 17-nation euro reversed declines against the dollar. The ECB and the Bank of England will hold policy meetings tomorrow. The yen touched a week-low against the dollar before Bank of Japan (8301) officials begin a two-day meeting tomorrow. Australia’s dollar slid to the least in almost a month after the nation recorded its widest trade deficit since 2008.
The euro was little changed at $1.2926 at 9:17 a.m. London time after touching $1.2878. The yen was also little changed, at 101.10 per euro and 78.21 per dollar. The Japanese currency earlier touched 78.31 per dollar, the weakest since Sept. 21.
ECB officials meet tomorrow in Ljubljana, Slovenia, with policy makers expected to keep the bank’s benchmark interest rate unchanged at a record-low 0.75 percent, according to a Bloomberg survey of economists.
The euro has weakened 4.7 percent in the past 12 months, according to Bloomberg Correlation Weighted Indexes. The yen declined the most among the 10 developed-nation currencies tracked by the gauge, falling 6.6 percent in the period. The dollar lost 2.8 percent.
Australia’s dollar sank today after data showed the nation’s trade deficit for August was almost three times wider than the median forecast of economists. Imports exceeded exports by A$2.03 billion ($2.07 billion) in August, compared with a revised A$1.53 billion shortfall in July.
Aussie Dollar
In China, data today showed non-manufacturing industries grew at the weakest pace since at least March 2011, fanning speculation the Reserve Bank of Australia will lower interest rates again following a quarter-point reduction yesterday. China is Australia’s biggest trading partner.“The Reserve Bank will cut again probably next month,” said Joseph Capurso, a strategist at Commonwealth Bank of Australia (CBA) in Sydney. “I don’t think the RBA will cut as much as the market is expecting, but those expectations have been one thing that has pushed the Aussie down.”
The so-called Aussie dropped as much as 0.6 percent to $1.0202, the weakest level since Sept. 6.
The yen dropped for a fourth day against the dollar, the longest runs of declines since Aug. 17, before the BOJ begins its policy meeting tomorrow. Officials expanded the Japanese central bank’s asset-purchase program last month in a bid to stimulate economic growth.
Japan’s new Economy Minister Seiji Maehara this week pledged a closer watch over the BOJ to ensure it meets its 1 percent inflation goal, adding that purchases of foreign bonds may be a powerful tool for easing.
The dollar may climb toward its highs in August and September versus the yen, MacNeil Curry, New York-based chief rates and currencies technical strategist at Bank of America Corp. wrote in a report yesterday.
A break above resistance at 78.18 to 78.24 “reinvigorates the uptrend” for dollar-yen, Curry wrote. Resistance is a level where orders to sell may be clustered. The greenback peaked at 79.66 yen on Aug. 20 and rose to as high as 79.22 on Sept. 19, according to data compiled by Bloomberg.
To contact the reporters on this story: Kristine Aquino in Singapore at kaquino1@bloomberg.net; Lucy Meakin in London at lmeakin1@bloomberg.net.
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net.
Posts
0 comments:
Post a Comment