Dollar Holds Drop Versus Euro Before Jobless Claims, Home Sales
The Bloomberg U.S. Dollar Index remained lower after declining yesterday by the most in a week before reports forecast to show initial jobless claims climbed and sales of previously owned homes dropped for a third month. U.S. lawmakers will continue a debate today over the nation’s budget, four days before federal spending authority runs out and a few weeks until the country hits its borrowing limit.
“The Fed has linked their tapering to growth in the economy, part of which is risked by the discussions in Washington about the debt ceiling,” said Andrew Salter, a currency strategist at Australia & New Zealand Banking Group Ltd. (ANZ) in Sydney. “Against the euro and pound, the dollar will be weak because of the Fed and the implications of tapering.”
The dollar fetched $1.3519 per euro at 8:45 a.m. in Tokyo, little changed from yesterday, when it fell 0.4 percent. It was at 98.46 yen from 98.43. Japan’s currency traded at 133.11 per euro from 133.14 in New York.
The Bloomberg U.S. Dollar Index was little changed at 1,012.90 after dropping 0.2 percent yesterday.
Applications for unemployment benefits in the U.S. probably climbed to 325,000 in the week ended Sept. 21 from 309,000 in the previous period, according to the median forecast of economists surveyed by Bloomberg News before today’s report. The figure dropped in the week through Sept. 7 to the lowest level since 2006 due to computer-system changeovers by California and Nevada employment agencies.
The National Association of Realtors may say today its index of pending home sales fell 1 percent last month after sliding 1.3 percent in July, a separate poll showed.