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)

Asian Stocks Rise as Ringgit Weakens While Gold Retreats

Asian stocks climbed, with the regional index rising from a one-month low led by Japanese shares, as better-than-estimated Chinese and U.S. economic data bolstered the global outlook. Most Asian currencies weakened against the dollar as precious metals retreated.

The MSCI Asia Pacific Index gained 0.5 percent by 9:11 a.m. in Tokyo, after closing at the lowest level since Oct. 8 last week. Japan’s Topix Index (TPX) jumped 1.2 percent as the yen traded at a seven-week low versus the greenback. Standard & Poor’s 500 Index (SPX) futures were little changed. Currencies from Australia to Malaysia and South Korea lost at least 0.1 percent. Gold was near the lowest closing level since Oct. 16 and silver lost 0.5 percent while copper futures rose 0.3 percent.

Industrial output in China rose more than analysts estimated last month while inflation quickened less than forecast, burnishing prospects for the world’s second-largest economy with Communist Party leaders currently meeting over policy. U.S. payrolls added almost twice as many workers as projected in October as investors gauge the timeline for Federal Reserve stimulus cuts. Australia reports on home loans today and Malaysia releases factory production figures.

Australia’s S&P/ASX 200 Index added 0.4 percent after snapping a four-week rally to decline 0.2 percent last week. The Kospi Index (KOSPI) rose 0.3 percent in Seoul after sliding 2.7 percent last week.

(Source: Bloomberg)

Dollar Holds Gains Before Jobs Data as GDP Boosts Fed Taper Bets

The dollar held gains against most major peers before a U.S. jobs report today and after data yesterday showed the economy expanded more than forecast, fueling bets for an earlier taper in Federal Reserve stimulus.

The U.S. currency headed for a second weekly gain against the euro as a Bloomberg measure of U.S. economic surprises turned positive for the first time in almost a month. The euro was set for a second weekly loss versus the yen after the European Central Bank unexpectedly cut interest rates to a record yesterday. Australia’s dollar fell after the central bank reduced its growth forecast for next year.

The dollar was little changed at $1.3414 per euro as of 9:44 a.m. in Tokyo from yesterday, when it touched $1.3296, the strongest level since Sept. 16. The greenback bought 98.19 yen from 98.09. Japan’s currency traded at 131.72 per euro from 131.63 in New York, when it gained 1.3 percent.

The dollar has risen 0.5 percent against the euro this week, following a 2.3 percent rally last week. It has fallen 0.5 percent versus the yen, while Japan’s currency has gained 1 percent over the euro.

(Source: Bloomberg)