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Dollar Falls on Greater Risk Demand

The dollar fell toady as Japan reported strong growth of 1.4 percent in the third quarter increasing investor demand for higher returns.

“The Fed has committed to low rates for a long time,” said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York. “With the Fed out of the equation, good numbers provide the backdrop for further risk taking.”

The dollar briefly pared its decline versus the euro after the Commerce Department reported that U.S. retail sales excluding automobiles increased last month less than economists forecast. Sales advanced 0.2 percent after a 0.4 percent gain in September. The median forecast of 61 economists in a Bloomberg survey was for a 0.4 percent gain. Including autos, sales increased 1.4 percent following a 2.3 percent drop.

Bloomberg [1]

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Scott Boyd

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