U.S. dollar falls most in month as China urges new reserve currency!
BEIJING, China - June 27, 2009 - The dollar declined the most against the euro in a month and dropped versus the yen after China repeated its call for a new global currency.
The Swiss franc declined against the euro and dollar this week as foreign-exchange analysts said the central bank sold its currency three times to support the economy. The greenback fell against most of its major counterparts yesterday after the People’s Bank of China said the International Monetary Fund should manage more of members’ foreign-exchange reserves.
“The dollar’s status as a reserve currency is being questioned,” said Benedikt Germanier, a foreign-exchange strategist in Stamford, Connecticut at UBS AG, the second- largest currency trader. “There are reasons to sell the dollar.”
The U.S. currency fell 0.9 percent to $1.4056 per euro this week from $1.3937 on June 19, the swiftest depreciation since the five days ended May 29. The dollar fell 1.1 percent to 95.18 yen from 96.27, its third consecutive weekly drop. The euro decreased 0.3 percent to 133.85 yen from 134.18.
Federal Reserve policy makers said on June 24 that inflation “will remain subdued for some time” and that the economy warrants an “extended period” of low rates.
The 10-year Treasury yield fell the most since March as investors bet that the Fed will keep interest rates close to zero for the rest of the year. The difference in spread between 2- and 10-year yields decreased this week to 2.43 percentage points, near the narrowest level since May 20.
The Swiss franc declined against the euro and dollar this week as foreign-exchange analysts said the central bank sold its currency three times to support the economy. The greenback fell against most of its major counterparts yesterday after the People’s Bank of China said the International Monetary Fund should manage more of members’ foreign-exchange reserves.
“The dollar’s status as a reserve currency is being questioned,” said Benedikt Germanier, a foreign-exchange strategist in Stamford, Connecticut at UBS AG, the second- largest currency trader. “There are reasons to sell the dollar.”
The U.S. currency fell 0.9 percent to $1.4056 per euro this week from $1.3937 on June 19, the swiftest depreciation since the five days ended May 29. The dollar fell 1.1 percent to 95.18 yen from 96.27, its third consecutive weekly drop. The euro decreased 0.3 percent to 133.85 yen from 134.18.
Federal Reserve policy makers said on June 24 that inflation “will remain subdued for some time” and that the economy warrants an “extended period” of low rates.
The 10-year Treasury yield fell the most since March as investors bet that the Fed will keep interest rates close to zero for the rest of the year. The difference in spread between 2- and 10-year yields decreased this week to 2.43 percentage points, near the narrowest level since May 20.
