The pound fell to a two-month low against the dollar after a government report showed U.K. inflation slowed more in October than economists forecast, damping bets the central bank will raise interest rates.
The dollar fell to an eight-month low against a basket of 10 major currencies on bets disruption from the U.S. debt-ceiling debate will damp growth and prompt the Federal Reserve to postpone tapering its stimulus program.
Investors are shunning foreign- exchange markets because currency moves are proving difficult to predict as more countries roll out stimulus programs, according to David Bloom, head of currency strategy at HSBC Holdings Plc.
The Australian currency’s top forecaster is predicting an almost 9 percent drop by the end of 2014, exceeding the consensus outlook, as the Federal Reserve’s taper of stimulus policies will revive a faltering U.S. dollar.
Investors should buy the krone against the euro after the Norwegian currency fell to the weakest in 2 1/2 years last month, according to David Bloom, global head of currency strategy at HSBC Holdings Plc in London.
The dollar slid to the weakest since February as appetite for higher-yielding assets rose on bets the Federal Reserve will delay tapering stimulus after a last-minute deal pushed the political battle over U.S. spending into 2014.
The euro’s unexpected rally this year is spurring a jump in hedging as the currency’s strength threatens to damp earnings at companies from Deutsche Lufthansa AG to luxury-goods maker LVMH Moet Hennessy Louis Vuitton SA.
Jane Pierce spent nine years struggling alongside her husband, Todd, as he fought cancer in his sinus cavity. The treatments were working. Then, in July 2009, Todd died in a fiery car crash. He was 46. That was the beginning of a whole new battle for Jane Pierce, this time with Todd’s life insurance company, MetLife Inc.
The dollar is unlikely to suffer a “cataclysmic selloff” should the U.S. lose its AAA credit rating, given investors’ limited alternatives to the world’s reserve currency, according to HSBC Holdings Plc.