The dollar traded near the lowest in almost six weeks versus the euro as an uneven economic recovery kept Treasury yields low, reducing the attractiveness of U.S. assets.
A gauge of the greenback closed at an eight-week low yesterday as a Citigroup Inc. index showed U.S. economic data are failing to beat estimates before jobs figures this week. The yen fell as Asian stocks advanced, reducing demand for haven assets. Australia’s dollar traded near the highest in almost three months as manufacturing improved in China, and before the Reserve Bank sets policy. Expectations for currency price swings fell to a record low.
“The dollar is falling as U.S. yields struggle to rise,” said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking Corp. in New York. “The market is becoming more cautious on the U.S. economy. We need a strong jobs number for investors to start buying the dollar again.”
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