The dollar declined to its weakest level in almost two months after factory production in the U.S. unexpectedly declined in January by the most since May 2009, adding to evidence severe winter weather weighed on the economy.
HSBC Holdings Plc, which gets more than half of its revenue from emerging markets, says it’s time to start buying their currencies after a selloff pushed exchange rates to their lowest levels since 2009.
The dollar rose to its highest level since September as data from industrial production to housing starts helped offset unemployment figures a week ago, signaling the Federal Reserve may continue reducing stimulus.
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.
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.
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.