Allison Bennett and Catarina Saraiva
September 28, 2010
- A d v e r t i s e m e n t
The dollar traded at almost a five- month low against the euro after U.S. home prices rose at a slower pace in July, fueling speculation the Federal Reserve will ease monetary policy.
The greenback was mixed against 16 most-traded counterparts as U.S. economic reports were expected to increase the likelihood the central bank will restart the purchase of government debt. The yen strengthened against the dollar to the strongest level since Japan intervened in the market Sept. 15 to weaken the currency.
“The market is looking for the high-frequency growth data to help predict the path that lies ahead for the Fed,” said Camilla Sutton, a Bank of Nova Scotia currency strategist in Toronto. “Consumer confidence by any measure is still historically very low.”
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