Dollar Drops Versus Major Peers on Europe Wagers; Rand Advances
The dollar dropped versus most major counterparts as the currency’s haven appeal ebbed amid speculation that Spain will seek a sovereign bailout and as demand increased at an Italian government-bond sale.
The greenback remained lower after fewer Americans than forecast filed first-time claims for jobless benefits. The currency rose earlier to the strongest in more than a week against the euro after Standard & Poor’s cut Spain’s sovereign- debt rating yesterday to one level above junk. South Africa’s rand gained for a third day on signs labor unrest is easing.
The U.S. currency is “trading primarily on what’s going on Europe,” Joseph Trevisani, chief market strategist at WorldWideMarkets in Woodcliff Lake, New Jersey, said in a telephone interview. “The Italians had a bond auction that went reasonably well.”
The dollar fell 0.5 percent to $1.2933 per euro at 9:53 a.m. New York time, after appreciating 0.4 percent earlier to $1.2826, the strongest level since Oct. 1. It gained 0.5 percent against the Japanese currency, to 78.56 yen. The euro climbed 1 percent to 101.62 yen.
The Dollar Index (DXY), which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six U.S. trade partners, fell 0.2 percent to 79.784. It earlier rose to 80.205, the highest since Sept. 11.