The dollar headed for a third weekly decline against the euro as
the U.S. housing slump and record oil prices slow growth in the world's
biggest economy.
The currency also declined versus the yen and traded near the weakest
level in a month versus the Swiss franc before an industry report today
that may show U.S. home sales fell for a second month. The Chinese yuan
headed for its biggest weekly gain this year on signs the country's
officials are accelerating the currency's gains to curb rising prices.
The dollar fell 14 percent against the euro in the past 12 months as
the U.S. central bank slashed its benchmark interest rate to 2 percent,
from 5.25 percent in September. The European Central Bank has kept its
benchmark rate at 4 percent. The Federal Reserve this week reduced its
economic growth forecast and raised its projection for inflation.
The euro headed for its biggest weekly gain in two months against the
dollar and a second weekly advance versus the yen on speculation the
economies of the 15 countries that share the currency will withstand
record high oil prices, lessening the need for a reduction in interest
rates.
EUR/USD traded within $1.5710/50. Offers $1.5750, $1.5785/00, bids $1.5690.
GBP/USD having got support at $1.9755 rised to $1.9830. Offers $1.9840/50, $1.9880, bids $1.9750
USD/JPY fell from Y104.10 to Y103.30. Bids Y103.10/00, stronger Y102.70/60, offers Y104.40.
US data sees just existing home sales for April at 1400GMT, which are expected to slow to a 4.85 million annual rate in April.