Sun, Jul 07, 2013 - Page 15 News List

Asian currencies stumble on Fed fears, slow China

Bloomberg and staff writer, with CNA

The Dollar Index, which IntercontinentalExchange Inc uses to track the greenback versus currencies of six major US trade partners, increased 1.6 percent to 84.449 this week in New York. The gauge touched 84.530 on Friday, the strongest level since July 13, 2010, as it extended a third weekly gain, the longest stretch since March 8.

The greenback climbed 1.4 percent to US$1.2829 per euro and reached US$1.2806, its strongest level since May 17. The US currency also advanced for a third week against the yen, strengthening 2.1 percent to ¥101.20. The euro appreciated 0.7 percent to ¥129.82.

Europe’s 17-nation currency slid versus the dollar after ECB President Mario Draghi made an unprecedented pledge to keep interest rates low for an extended period.

Sterling slid versus all except two major peers, dropping the most since February against the US dollar on bets that the Bank of England is ready to do more to aid the UK recovery.

The pound ended the week down 2.1 percent at US$1.4890 and slid to a two-month low against the euro. Britain’s currency depreciated 0.6 percent to £0.8607 per euro.

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