The currency dropped for a second day as Minneapolis Fed President Gary Stern told the Financial Times that the U.S. credit crunch will get worse. The Chinese yuan declined after the Communist Party's Politburo said on July 25 that growth and inflation are both priorities, fueling speculation that the government will curb currency appreciation to aid exporters.
The dollar fell 0.2 percent to $1.5747 per euro at 11:54 a.m. in New York, from $1.5709 on July 25. It touched $1.5629 on July 24, the strongest level since July 7. The dollar will trade in a range of $1.5650 to $1.5950 in the next few weeks, Serebriakov said. The U.S. currency dropped 0.4 percent to 107.45 yen, from 107.84, after earlier reaching 108.07, the highest since June 26. The euro traded at 169.24 yen, compared with 169.40. It touched the all-time high of 169.96 on July 23.
U.S. home prices in the S&P/Case-Shiller index fell 16 percent in May from a year ago, the most on record, according to the median forecast of 21 economists surveyed by Bloomberg News. The report is due tomorrow. Nonfarm payrolls dropped by 75,000 in July, following a decline of 62,000 in June, according to a separate survey. The Labor Department will release the employment data on Aug. 1.
The dollar depreciated to an all-time low of $1.6038 per euro on July 15 on concern financial losses and record oil prices may prolong the economic slowdown in the U.S.