The dollar declined from the highest level on record after U.S. durable-goods orders decreased 3.4 percent in December.
The U.S. currency fell against most major counterparts as the drop in items meant to last at least three years followed a 2.1 percent slide the prior month, data from the Commerce Department showed in Washington. Federal Reserve policy makers meeting this week are forecast to hold interest rates steady as a winter storm slowed the U.S. northeast. The euro strengthened after a Swiss National Bank official said it remained ready to intervene in markets. The ruble rose from a record low.
“The dollar should perhaps give back a little ground on the basis of the durable goods data — they were unequivocally weak and well below expectations,” said Shaun Osborne, chief currency strategist at Toronto-Dominion Bank, Canada’s largest lender. “The issue is perhaps participation. The storm is keeping people at home and markets are fairly illiquid it seems.”
The Bloomberg Dollar Index, a gauge of the currency’s performance against 10 major peers, slid 0.5 percent to 1,156.24 at 8:58 a.m. New York time. It closed at a record 1,161.42 in New York on Jan. 26.
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.