Dollar Heads for Longest Gain Since 2006


The dollar headed for a sixth day of gains against the euro, the longest rally since October 2006, on speculation tumbling commodity prices will give a boost to the world's largest economy.

The greenback also rose against the Australian and New Zealand currencies as crude oil traded near a 14-week low, copper fell to the weakest in six months and gold dropped to the cheapest since December.

The dollar traded at $1.4904 per euro at 8:08 a.m. in New York, compared with $1.4909 yesterday. It touched $1.4816, the strongest since Feb. 26.

The greenback bought 109.99 yen, near a seven-month high of 110.40 set yesterday. The euro was at 163.93 yen after reaching 163.26 yen, the lowest level since June 5.

The dollar's 14-day relative strength index against the euro fell to 19.65 today, the lowest since the common European currency's debut in 1999. A reading below 30 suggests a change in price direction is imminent.

The Dollar Index rose for an eighth straight day, the longest winning streak since March 2005. It advanced 0.1 percent to 76.205 and touched 76.616 earlier, the highest level since Feb. 12. The index rose 1.7 percent on Aug. 8, the biggest jump in six year


TradingEconomics.com, Bloomberg
8/12/2008 9:54:49 AM