BLBG:Dollar Falls Versus Yen Before Durable-Goods Report; Kiwi Rises
The dollar weakened for the first time in four days against the yen before a U.S. government report that economists said will show durable goods orders declined in July.
The Bloomberg U.S. Dollar Index was little changed as investors weigh whether the economy is strong enough to support a reduction in Federal Reserve stimulus next month. The New Zealand dollar strengthened for the first time in six days as gains in Asia stocks revived demand for higher-yielding currencies. India’s rupee declined before a government report this week forecast to show economic growth slowed.
“The market’s perception on Fed tapering in September remains divided,” said Junichi Ishikawa, an analyst at IG Markets Securities Ltd. in Tokyo. “The dollar will continue to be swayed by economic data.”
The dollar dropped 0.2 percent to 98.57 yen at 8:30 a.m. in London after strengthening 1.2 percent last week. The U.S. currency was little changed at $1.3371 per euro. The euro declined 0.2 percent to 131.80 yen.
U.S. durable goods orders fell 4 percent in July from the previous month, when they increased a revised 3.9 percent, according to the median estimate of economists surveyed by Bloomberg News before today’s Commerce Department report.
The Bloomberg U.S. Dollar Index was at 1,026.58 after rising to 1,031.37 on Aug. 22, the highest since Aug. 2.
The New Zealand dollar strengthened 0.3 percent to 78.28 U.S. cents. The rupee slid 1.3 percent to 64.175 per dollar.
Financial markets are closed in London today due to a public holiday.
To contact the reporters on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net; Kevin Buckland in Tokyo at kbuckland1@bloomberg.net
To contact the editor responsible for this story: Nicholas Reynolds at nreynolds2@bloomberg.net
