Dollar Trades Near 2-Week Low Versus Euro


The dollar traded near a two-week low against the euro on speculation U.S. reports tomorrow will show falling house prices are eroding confidence among consumers.

The U.S. currency approached a one-week low versus the yen as traders raised bets that the Federal Reserve will delay increasing interest rates to prevent further credit-market writedowns. The British pound fell against the euro after an industry report showed U.K. house prices declined by the most this year in June.

The dollar traded at $1.5616 against the euro at 10:10 a.m. in Tokyo near the lowest level since June 10, compared with $1.5606 in New York on June 20. The dollar bought 107.27 yen, close to the weakest level since June 12, from 107.33 late last week. The euro traded at 167.49 yen from 167.54 yen.

The U.S. currency has risen 1.1 percent against the euro and 7.6 percent versus the yen this quarter, as Fed Chairman Ben S. Bernanke said earlier this month economic risks had faded, prompting investors to bet the central bank will raise interest rates later this year after seven decreases since September.

A S&P/Case-Shiller report tomorrow will show home prices in 20 U.S. metropolitan areas dropped 15.9 percent in April from a year earlier, the most since records were first published in 2001, a Bloomberg News survey of economists shows. The Conference Board consumer confidence index probably fell to 56.4 in June, the lowest since October 1992, from 57.2 in May, according to a separate survey.

Gains in the euro may be limited by speculation an industry report today will show German business confidence fell in June as record oil prices and the prospect of higher interest rates dimmed the outlook for growth in Europe's largest economy.


TradingEconomics.com, Bloomberg
6/22/2008 7:49:47 PM