BLBG: Dollar Slips Beyond $1.40 per Euro for First Time Since January
The dollar declined beyond $1.40 against the euro for the first time in four months on speculation U.S. creditworthiness deteriorated and near-zero borrowing costs made U.S. assets less attractive to investors.
The yen rose to a nine-week high versus the dollar after Japan’s Finance Minister Kaoru Yosano said the government won’t intervene in the currency market and the Bank of Japan raised its economic assessment. The dollar headed for its biggest weekly drop versus the euro since March after Pacific Investment Management Co.’s Bill Gross said yesterday the U.S. will “eventually” lose its AAA credit rating.
“The credit-rating story is bubbling to the surface,” said Alan Ruskin, head of international currency strategy in North America at RBS Securities Inc. in Greenwich, Connecticut. “When you have a beginning of a global recovery, the fragility for the bond and the dollar is the most as capital may find a better place to go. You cannot fight the move.”
The dollar slid 0.8 percent to $1.4007 per euro at 9:16 a.m. in New York, from $1.3890 yesterday, after reaching $1.4019, the weakest level since Jan. 2. The U.S. currency slumped 3.6 percent this week, heading for the biggest loss since the five days ended March 20.
