nomists’ forecasts. “In all likelihood the RBA will be tightening again in the coming months and this underpins the outlook” for the Aussie, Jane Foley, a senior foreign-exchange strategist at Rabobank International in London, wrote in a client note. Australia’s currency may move toward $1.0130 if it can “muster the energy to push beyond the $1.005 level today,” she said in the note. Australia’s dollar climbed 1.3 percent to $1.0003, surpassing parity for the first time since Oct. 15. Pound Drops The pound fell 1 percent to 87.52 pence per euro and was 0.1 percent weaker at $1.6020. A gauge based on a survey of purchasing managers at building companies fell to 51.6 in October from 53.8 a month earlier, Markit Economics Ltd. and the Chartered Institute of Purchasing and Supply said in an e-mailed statement. The median estimate of 10 economists in a Bloomberg News survey was for a reading of 53. A measure above 50 indicates expansion. The U.S. currency fell for the third day in four against the euro on speculation Fed policy makers will announce a new asset-purchase plan, known as quantitative easing, after their meeting to bolster the recovery. Easing Outlook Fifty-three of 56 economists surveyed last week said the Fed will restart a purchase program. Twenty-nine estimated it will pledge to buy $500 billion or more, while another seven forecast $50 billion to $100 billion in monthly purchases without a specified total. “We could well find ourselves in a situation where the Fed goes down the QE route,” said Khoon Goh, head of market economics and strategy at ANZ National Bank Ltd. in Wellington. “We’ll see further dollar weakness, particularly if the Fed puts into place a program that meets or exceeds market expectations.” The Dollar Index, which IntercontinentalExchange Inc. uses to track the dollar against the currencies of six major U.S. trading partners including the euro, fell 0.7 percent to 76.779. The dollar’s losses against the euro may reverse as traders shift their focus to European countries’ budget deficits after the Fed meeting, according to Commerzbank AG. While investors “question the long-term sustainability of the peripheral countries’ budgets,” such “fundamental concepts as this are hardly going to be relevant while the issue of quantitative easing II is still dominating the markets,” a team of analysts led by Ulrich Leuchtmann in Frankfurt wrote in a research note today. “But afterwards these issues might begin to put pressure” on the euro, they wrote. The euro may decline to $1.35 by the end of next month, they said. To contact the reporters on this story: Allison Bennett in New York at abennett23@bloomberg.net; Lukanyo Mnyanda in London at lmnyanda@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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