The dollar rose against most major peers after Federal Reserve Chairman Ben S. Bernanke said the central bank may taper monthly bond purchases at its next few meetings if it’s confident of sustained gains in the economy.
The euro pared a gain against the dollar amid concern the region’s economy may struggle to grow a day after European Central Bank President Mario Draghi said he’s ready to cut interest rates again if needed.
The dollar fell against 14 of its 16 most-traded peers before the Federal Reserve opens a two-day meeting tomorrow amid bets it will maintain bond purchases under quantitative easing for the foreseeable future.
The euro fell to a two-week low against the dollar as a report showed weakening services and manufacturing in the region, adding to speculation the European Central Bank will lower interest rates to spur economic growth.
The Canadian dollar fell against its U.S. counterpart for the first time this week as U.S retail sales dropped the most in nine months and on reports that steps to strengthen Europe’s financial system were faltering.
The dollar fell against the euro, reversing an earlier gain, after a report showed manufacturing in the Philadelphia region expanded less than forecast, boosting the chances that U.S. monetary stimulus will be maintained.
The yen rallied against all of its 16 most-traded peers after it failed yesterday to weaken beyond 100 to the dollar, a level not seen in four years, and a technical indicator signaled it had fallen too much, too fast.
The Canadian dollar touched the highest level against its U.S. counterpart in almost two months as the Bank of Japan’s monetary stimulus measures sent investors in search of higher-yielding currencies.
The Canadian dollar touched its lowest level in almost four weeks against its U.S. peer on speculation the Bank of Canada may follow the International Monetary Fund in cutting economic growth forecasts.