The dollar closed higher versus the euro in the first week of the year after the Federal Reserve suggested bond-buying operations may end in the middle of 2013 and concern grew the U.S. will struggle to reach a debt accord.
The dollar fell from a three-week high versus the euro after data showed the U.S. unemployment rate was higher than forecast in December, fueling bets the Federal Reserve won’t hurry to end its stimulus efforts.
The Canadian dollar fell from almost a two-week high against its U.S. counterpart as Bank of Canada Governor Mark Carney was named chief of the Bank of England, spurring speculation over who will replace him in Ottawa.
The euro reached the lowest level in almost three weeks amid a growing divide over Europe’s new bailout strategy and data that showed the region’s three-year- old sovereign-debt crisis is weighing on its economy.
The dollar rallied versus 15 of its 16 most-traded counterparts as concern the world’s largest economy is stalling and Europe’s debt crisis is worsening damped demand for higher-risk assets. Standard & Poor's cut the nation's AAA rating to AA+ after markets closed yesterday.
Canada’s dollar fell for a fourth week versus its U.S. counterpart in the longest losing streak since June amid concern global growth will falter as the American economy stalls and Europe’s debt crisis worsens.