High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/b1c045a8-2406-11e2-94d0-00144feabdc0.html#ixzz2Ay1QCeaE
By Alice Ross
The US dollar fell for the second day against other major currencies amid improving risk appetite in the currencies market, though trading remained light in the aftermath of hurricane Sandy and the disruption it caused to trade.
The euro, pound, Australian dollar and Swiss franc all posted gains against the US currency, helped by better than expected third-quarter corporate earnings in Asia and Europe.
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/b1c045a8-2406-11e2-94d0-00144feabdc0.html#ixzz2Ay1RRoF0
The UK pound was 0.3 per cent higher at $1.6123, shrugging off a survey showing that UK consumer confidence was weaker than expected in October to rise in line with global risk appetite.
The euro touched above $1.30, rising 0.3 per cent to $1.3007 ahead of inflation data for the eurozone that was expected to show a slowing in the consumer price index to 2.5 per cent in October. The single currency was also helped by an improving retail sector in Germany, with retail sales rising more than expected in September in the eurozone’s largest economy.
The Australian dollar rose 0.3 per cent to $1.0396, helped by signs that the housing sector was holding up better than expected, with building approvals showing a strong rise in September. However, investors were still expecting the Reserve Bank of Australia to cut interest rates again when it meets next week.
Risk appetite was expected to receive a further boost with the release of Chicago PMI figures, a closely watched indicator of the health of the US economy that was expected to show the business sector was expanding once more.
The Norwegian krone posted a sharp gain after Norway’s central bank said it did not plan to sell the currency to buy other assets for its oil fund. Purchases of overseas assets by Norges Bank for the country’s large oil fund are one of the most closely watched indicators for the Norwegian krone. The US dollar fell 0.8 per cent to NKr5.6828, with traders also expecting Norges Bank to hold interest rates at 1.5 per cent later in the day.
