Dollar Holds One-Day Retreat Versus Euro as Yellen Hearing Looms

The dollar held a one-day decline versus the euro before Janet Yellen faces a confirmation hearing this week for the top job at the Federal Reserve.

The Bloomberg U.S. Dollar Index yesterday retreated from a two-month high ahead of the Nov. 14 hearing as traders assess whether the economy is strong enough for the Fed to reduce stimulus. A report today is forecast to show confidence among U.S. small businesses fell in October to match the lowest level since April. The pound held five days of gains versus Australia’s currency before the Bank of England publishes new economic and inflation forecasts at a press conference tomorrow.

The dollar traded little changed at $1.3409 per euro as of 8:55 a.m. in Tokyo after falling 0.3 percent to $1.3407 yesterday. It bought 99.15 yen from 99.16 yen. The euro was little changed at 132.96 yen after rising 0.4 percent yesterday.

The pound fetched A$1.7069 after climbing 1.7 percent in the past five sessions.

Yellen, the Fed vice chairman, was nominated by President Barack Obama to succeed Chairman Ben S. Bernanke when his term ends Jan. 31. Pacific Investment Management Co.’s Bill Gross said Nov. 8 he expects Yellen’s Fed to be more accommodative with the economic expansion sluggish and the risk of deflation.

(Source: Bloomberg)