Dollar Near 2011 Low Versus Euro on Fed Stimulus Bets

The dollar held near an almost two-year low against the euro before U.S data that may add to the case for the Federal Reserve to maintain stimulus for longer.

The Bloomberg U.S. Dollar Index dropped to the weakest in eight months yesterday after a Labor Department report showed employers added fewer jobs than economists estimated. The Aussie dollar rose to a four-month high after data released in Sydney showed that inflation quickened in the third quarter. The euro held near the strongest since 2009 versus the yen before data today that may show the trading bloc’s consumer confidence rose to the highest since July 2011.

The dollar was unchanged at $1.3781 per euro as of 10:12 a.m. in Tokyo from yesterday, when it touched $1.3792, the weakest level since November 2011. The greenback slid 0.1 percent to 98.07 yen. The euro fetched 135.15 yen from 135.25 yesterday, when it reached 135.51, the highest since November 2009.

Bloomberg’s U.S. Dollar Index, which tracks the greenback against 10 major currencies, was at 999.01 from 999.46 yesterday, the lowest close since Feb. 13.

The MSCI Asia Pacific Index of stocks rose 0.3 percent, following a 0.7 percent climb in the MSCI World Index yesterday.

(Source: Bloomberg)