BLBG: Dollar, Yen Rise as Record Low Sentiment Boosts Haven Demand
The dollar and the yen rose from one-week lows against the euro as a report showed U.S. consumer confidence unexpectedly fell this month to a record, increasing the haven demand for the currencies.
“We definitely have the risk-aversion-equals-a-stronger- dollar theme back,” said Dustin Reid, director of currency strategy at RBS Global Banking & Markets in Chicago. “There’s demand for dollars and dollar-denominated assets.”
The dollar gained 0.4 percent to $1.3140 per euro at 10:31 a.m. in New York, from $1.3189 yesterday, after touching $1.3330, the weakest level since Jan. 19. The yen strengthened 0.8 percent to 116.56 per euro from 117.51 after reaching 119.45, also the weakest since Jan. 19. The yen advanced 0.5 percent to 88.66 per dollar from 89.10.
The Conference Board’s index of consumer confidence fell to 37.7, from a revised 38.6 in December, the New York-based private research group said today. The median forecast of 70 economists surveyed by Bloomberg News was for an increase to 39. Records began in 1967.