Dollar Near 4-Month Low Versus Euro Before Fed Decision

The dollar traded 0.2 percent from a four-month low against the euro amid speculation the Federal Reserve will announce it will buy bonds under a program of quantitative easing that tends to debase the currency.

Gains in the euro were limited after Greek Prime Minister Antonis Samaras received the second refusal in four days from coalition partners over plans to reduce spending that’s key to receiving international aid. The New Zealand dollar traded near the strongest in more than four months after the nation’s central bank left interest rates unchanged at 2.5 percent.

“The prevailing views are that the Fed will conduct another round of quantitative easing,” weighing on the dollar, said Marito Ueda, senior managing director in Tokyo at FX Prime Corp. (8711), a currency-margin company. “Considering the Greek situation, I still see about a 70 percent chance the nation will leave the euro bloc.”

via Bloomberg

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