The dollar fell for the first time in four days against the euro on
speculation a U.S. housing slump and a seizure in credit markets will
tip the world's largest economy into recession.
Federal Reserve Chairman Ben S. Bernanke will testify at the House Budget Committee on the economic outlook and financial markets at 1400GMT today.
A rebound in U.S. growth won't happen right away as the government
tries to unfreeze credit markets roiled by losses on mortgage
derivatives, he said on Oct. 15. Pessimistic comments on the economy
could knock the dollar lower
The U.S. index of leading indicators
fell 0.1 percent last month as rising unemployment encouraged consumers
to spend less, according to the median estimates. The Conference Board
to publish the report at 1400GMT. The index, a gauge of the economy's
direction in the next three to six months, has posted only two monthly
gains this year.
Rates cut expectations may also pressure US
currency. Interest-rate futures show a 100 percent chance the Fed will
lower its 1.5% target lending rate by at least a quarter-percentage
point when the central bank announces its next policy decision on Oct.
29. That compares with no odds for a rate cut one month ago.
EUR/USD from $1.3400 gained up to $1.3530, before fell back to
$1.3480. Offers remain in place to $1.3530/50. Bids $1.3430, more
between $1.3415/10 ahead of $1.3400 and area between $1.3395/85.