The
Dollar Index held a four-day gain amid declines in Asian stocks and prospects
for the Federal Reserve to pare back bond buying as the economy strengthens.
The
greenback was 0.8 percent from a two-week high versus the yen before U.S.
reports that economists said will show house prices increased and durable-goods
orders gained. Volatility in the Australian dollar was near the highest in 1
1/2 years amid concern a cash crunch in China will curb economic growth in the
South Pacific nation’s biggest export market.
“The
dollar is starting to really find momentum as the economy starts to point to
the end of quantitative easing,” said Andrew May, a sales trader at CMC Markets
in Auckland. Traders “are getting out of stocks, coming out of risk and
commodities, so there’s going to be that resurgence back into the U.S. dollar.”
The
Dollar Index, which Intercontinental Exchange Inc. uses to monitor the U.S.
currency against those of six trading partners, was little changed at 82.458 as
of 10:29 a.m. in Tokyo from 82.425 yesterday, the highest closing level since
June 5.
The
U.S. currency rose 0.2 percent 97.90 per dollar after yesterday touching 98.70,
the most since June 11. It was little changed at $1.3122 per euro. The yen fell
0.2 percent to 128.48 per euro from 128.22.
JPMorgan
Chase & Co.’s Group of Seven Volatility Index, based on currency option
premiums, rose to as high as 11.96 percent yesterday, the most since January
2012. The gauge has averaged 8.76 percent in the past year.
(Source:
Bloomberg)
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