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U.S. Dollar Hits Three Week Low

The U.S. dollar slid to a three-week low against the yen before data tomorrow that economists said will show U.S. retail-sales growth slowed, strengthening the case against faster tapering by the Federal Reserve.

The Bloomberg Dollar Spot Index dropped for a third day after a report last week showed the U.S. added fewer workers in December than the most pessimistic projection in a Bloomberg News survey. Australia’s dollar climbed to a one-month high after home-loan growth exceeded analysts’ forecasts. The rand fell the most against the dollar and yen among 16 major currencies before a report tomorrow analysts said will show South African mining-production slowed.

“There are some occasional weak data-points, but the growth in the U.S. economy is far from being in doubt,” said Andrew Wilkinson, the Greenwich, Connecticut-based chief market analyst at Interactive Brokers LLC. “In the longer run, we’ll see dollar-yen trade at 110. There’s nothing changing in the overall picture, just that too many people have gotten on one side of the boat.”

Bloomberg [1]

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