BS: Dollar Declines as Stronger U.S. Economic Data Help Risk Demand
Sept. 30 (Bloomberg) -- The dollar weakened against the majority of its most-traded counterparts after stronger-than- forecast reports on the U.S. economy fueled demand for riskier assets.
The U.S. currency touched a five-month low against the euro as U.S. jobless claims unexpectedly fell, second-quarter economic growth was revised higher and a regional purchasing managers survey was stronger than forecast. The yen traded near its strongest level versus the euro and greenback since Sept. 15 when the Bank of Japan sold $25 billion to weaken its currency.
“It’s seen as a risk-on event,” said Sebastien Galy, a currency strategist at BNP Paribas SA in New York. “The U.S. economy is performing a little bit better than you would expect. We’re seeing the dollar weaken.”
The dollar was little changed at $1.3629 per euro at 10:16 a.m. in New York, after touching $1.3683, the weakest level since April 12, from $1.3627 yesterday. The greenback strengthened to 83.51 yen from 83.70 yen yesterday, and touched 83.17 yen, the lowest since Sept. 15. The euro weakened to 113.89 yen from 114.06 yen.
--With assistance from Toru Fujioka in Tokyo. Editors: Paul Cox
To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net