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 thatâ€™s key to receiving international aid. The New Zealand dollar traded near the strongest in more than four months after the nationâ€™s central bank left interest rates unchanged at 2.5 percent.
â€œThe prevailing views are that the Fed will conduct another round of quantitative easing,â€ weighing on the dollar, said Marito Ueda, senior managing director in Tokyo at FX Prime Corp. (8711), a currency-margin company. â€œConsidering the Greek situation, I still see about a 70 percent chance the nation will leave the euro bloc.â€
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.