BS: Dollar Rises From Eight-Month Low Versus Yen After ISM Report
Aug. 4 (Bloomberg) -- The dollar rose from an eight-month low against the yen and strengthened for the first time in three days versus the euro after a report showed U.S. service industries grew in July at a faster pace.
The yen had rallied earlier on speculation growth in the world’s biggest economy is slowing and the Federal Reserve may signal additional stimulus measures at next week’s policy meeting. The greenback also gained versus the Swiss franc, Norwegian krone and British pound.
“You’re seeing dollar recovery with these data releases,” said Brian Kim, a currency strategist at UBS AG in Stamford, Connecticut. “It might not be as bad people are saying.”
The yen weakened to 86.10 per dollar at 10:22 a.m. in New York from 85.79 yesterday. The dollar gained 0.5 percent to $1.3169 per euro from $1.3231.
Japan’s currency has appreciated versus all of its major peers this year as speculation the global recovery will falter stoked demand for the safest assets. It climbed to 85.33 earlier, the highest since Nov. 27, when the yen touched levels last seen in 1995.
Japanese Finance Minister Yoshihiko Noda told parliament yesterday that currency rates should be determined by financial markets. He declined to comment on whether Japan will consider intervening to stem the yen’s appreciation.
--Editor: Dave Liedtka
To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
