Dollar Falls to 1-Month Low Versus Yen Before Home Sales, FOMC

The dollar dropped to a one-month low versus the yen before a private report forecast to show sales of previously owned homes fell and the Federal Open Market Committee starts a two-day meeting tomorrow.

The Bloomberg Dollar Index touched the lowest level in five weeks as investors weighed whether the U.S. economy is robust enough for the Fed to start reducing stimulus. The yen was supported as a decline in Asian stocks boosted demand for haven assets. Bank of Japan Governor Haruhiko Kuroda will speak at the Research Institute of Japan in Tokyo today.

The dollar touched 97.78 yen, the lowest since June 27, before trading at 98.08 as of 9:50 a.m. in Tokyo, 0.1 percent below last week’s close in New York. The greenback was at $1.3286 per euro from $1.3279 on July 26, when it fell to $1.3297, the weakest since June 20. The yen fetched 130.27 per euro from 130.42.

The Bloomberg Dollar Index, which tracks the greenback against 10 other major currencies, traded at 1,022.42 from 1,022.85 at the end of last week, after touching 1,021.61, a level unseen since June 19.

The MSCI Asia Pacific Index of stocks dropped 0.8 percent, while the Topix Index of Japanese shares sank 2 percent.

(Source: Bloomberg)