Dollar Heads for Fifth Weekly Gain

The dollar headed for a fifth weekly gain against the euro, its longest winning streak in more than two years, as crude oil declined and economies from Germany to Japan contracted.

The U.S. currency rose to the strongest level in almost six months against the euro and a seven-month high versus the yen. The pound dropped for an 11th day against the dollar, the longest run of declines in at least 37 years, on speculation a recession will force the Bank of England to cut interest rates.

Against the euro, the dollar rose 0.5 percent to $1.4747 at 9:04 a.m. in New York, from $1.4826 yesterday. It earlier touched to $1.4698, the strongest level since Feb. 20. The U.S. currency increased 0.6 percent to 110.43 yen, from 109.74. It earlier rose to 110.66, the strongest since Jan. 2. The euro traded at 162.87 yen, compared with 162.68.

The dollar has risen 1.9 percent versus the euro this week in its longest stretch of weekly gains since February 2006. The U.S. currency is headed for a 0.2 percent advance versus the yen, its second straight weekly increase. The euro is poised for a fourth weekly decline against the yen, dropping 1.6 percent.

Dollar Heads for Fifth Weekly Gain, Bloomberg
8/15/2008 6:23:40 AM