U.S. Dollar Set for Monthly Losses as Fed Meets

The dollar headed for monthly losses against most major peers before U.S. data forecast to show consumer confidence fell to a five-month low and retail sales stalled as the Federal Reserve starts a two-day meeting today.

The Bloomberg U.S. Dollar Index was set for a second month of declines amid bets the partial government shutdown has added to the case for the Fed to delay paring stimulus. The euro touched a two-month high versus the pound before a report due today that may show stronger consumer sentiment in France, Europe’s second-largest economy. The Aussie dollar fell after Reserve Bank of Australia Governor Glenn Stevens said the currency will probably be “materially lower.”

“The trend for dollar selling continues,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “Most people think tapering won’t begin until spring, as the fallout from the government shutdown has made a move this year highly unlikely.”

Bloomberg

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