The dollar fell to a five-month low against a basket of peers on speculation a drop in initial jobless claims won’t be enough for the Federal Reserve to accelerate plans to raise interest rates.
The Canadian dollar rose for a second day after job creation rebounded, damping speculation the Bank of Canada will cut interest rates to spur the economy.
The yen advanced the most in more than three weeks against the dollar as a slump in China’s currency and its stock market stoked concern growth in the world’s second-biggest economy is slowing.
The pound weakened the most in more than a month against the euro as European Central Bank President Mario Draghi raised forecasts for euro-area growth this year, boosting the relative allure of the shared currency.
The pound advanced, climbing to the strongest in a month against the euro, after an industry report showed U.K. services output expanded at the fastest pace in 16 years in October.
The pound weakened for a second day against the euro and dollar before the Bank of England publishes new forecasts in its quarterly Inflation Report this week.
The dollar dropped to almost a three- month low against the yen as reports on company employment and service-industries growth showed mixed results, underscoring the economy’s uneven recovery.
The dollar gained after a report showed the U.S. trade deficit shrank more than forecast in November as oil imports dropped to the lowest level in three years, boosting the allure of American assets.
The yen rose the most in three years against the dollar as the Bank of Japan refrained from adding more stimulus measures that tend to weaken a currency.
The dollar reached a five-year high against the yen on optimism U.S. economic growth will outperform Japan’s next year.
"They are maintaining that really dovish stance that's categorized loonie performance over the last couple of quarters."
- Jeremy Stretch on Apr 16, 2014
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