The dollar touched the weakest almost two-years against the euro before U.S data that may add to the case for the Federal Reserve to keep its current pace of asset purchases for longer.
The Bloomberg U.S. Dollar Index is set for the lowest close in eight months after a Labor Department report yesterday showed employers added fewer jobs than economists estimated. The Aussie dollar touched a four-month high on Australian inflation data before erasing gains. The yen climbed against all its major counterparts amid demand for refuge assets.
“The market is turning to the quantitative easing trade as tapering gets pushed back to possibly March next year,” said Masato Yanagiya, the head of foreign exchange and money trading in New York at Sumitomo Mitsui Banking Corp. “The dollar is coming under some selling pressure.”
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