The dollar traded at almost the lowest since February as a partial shutdown of the U.S. government boosted speculation the Federal Reserve will persevere with asset purchases that tend to weaken the currency.
The world’s most accurate foreign- exchange forecasters say the dollar will be the best currency to own this year as the Federal Reserve’s bond purchases bolster the U.S. economy instead of debasing America’s legal tender.
Washington’s wrangling over a partial government shutdown and lifting the U.S.’s borrowing limit has strategists cutting their forecasts for the dollar for a third straight month, the longest stretch this year.
Nick Bennenbroek , head of currency strategy at Wells Fargo & Co. in New York, comments on the impact on the euro of International Monetary Fund Managing Director Dominique Strauss-Kahn ’s arrest in New York on attempted-rape charges, Speaking in an interview with Betty Liu on Bloomberg Television’s “In the Loop,” he also focuses on prospects for the dollar as the U.S. debt limit is reached.
The dollar fell versus 14 of its 16 most-traded peers as business activity in the U.S. unexpectedly shrank for the first time in more than three years amid bets the Federal Reserve won’t slacken its bond buying under quantitative easing.