BLBG: Dollar Weakens Against Yen, Euro as Stocks Reverse Decline
The dollar fell against the euro and the yen as stocks rallied from earlier declines and investor demand for the U.S. currency as a refuge waned.
The dollar traded near its lowest level this year versus the euro as the MSCI World Index rose 0.3 percent and Reuters cited a spokesman for Russian President Dmitry Medvedev as saying emerging-market leaders may discuss the idea of a supranational currency this month. The euro weakened against the yen after a report showed Europe’s jobless rate jumped to the highest in almost 10 years, giving policy makers more reason to cut interest rates or expand asset purchases this week.
“There’s been a lot of talk out of Russia about a new global currency and that’s contributing toward this latest bout of dollar weakness,” said Henrik Gullberg, a London currency strategist at Deutsche Bank AG. “These latest comments are just adding to the general dollar weakness we’ve seen recently.”
The dollar depreciated to $1.4213 per euro as of 7:30 a.m. in New York, from $1.4159 yesterday, when it depreciated to $1.4246, the weakest this year. It fell to 95.98 yen, from 96.59. The yen strengthened to 136.14 per euro, from 136.78 yesterday.
