The Dollar Index dropped for a ninth week, the longest losing streak in more than five years, as economic data signaled the US recovery is stalling and added to concern the world’s biggest economy may need more stimulus.
The greenback fell to an eight-month low versus the yen and the weakest level since May against the euro as reports showed the US lost more jobs last month than forecast and US factory orders and existing-home sales slid in June.
“The data continues to come in, for the most part disappointing,” said Brian Dolan, chief strategist at FOREX.com, a unit of online currency trading firm Gain Capital Inc in Bedminster, New Jersey. “We’re still grappling with a slowdown in the US, a potential policy response from the Fed; all of that argues for a weaker dollar.”
The Dollar Index, which IntercontinentalExchange Inc uses to track the greenback against the currencies of six major trading partners, fell 1.4 percent over the five days ended Friday to 80.407. It registered its last weekly gain on June 4. It was the longest period of losses since the 11 weeks ended Dec. 3, 2004.
The yen gained 1.1 percent to ¥85.51 per US dollar, the second weekly advance, from ¥86.47 on July 30. It reached ¥85.02, the lowest since Nov. 27, when it touched levels last seen in 1995. The greenback tumbled 1.7 percent to US$1.3280 per euro, its second weekly loss, and touched US$1.3334, the weakest since May 3. The shared currency rose 0.6 percent to ¥113.55.
The yen has risen the most this year among 10 developed-world currencies, 11 percent, Bloomberg Correlation-Weighted Currency Indices show. The US dollar has gained 0.7 percent, while the euro, the worst performer, has dropped 7.4 percent.
The pound was 1.8 percent stronger on the week at US$1.5975 as of 5:04pm on Friday. It reached US$1.5999 on Friday, its highest level since Feb. 3. Sterling has weakened 0.7 percent this year, according to Bloomberg Correlation-Weighted Indexes. It appreciated less than 0.1 percent in the week versus the euro to £0.8314.
Asian currencies strengthened for a third week, led by South Korea’s won and Malaysia’s ringgit, as signs the US recovery is losing traction spurred demand for assets in the faster-growing economies of the world.
South Korea’s won appreciated 1.8 percent to 1,161.90 per US dollar in Seoul, touching an 11-week high of 1,161.78 on Friday, according to data compiled by Bloomberg.
Malaysia’s ringgit rose 1.3 percent to 3.1495 in Kuala Lumpur, having reached a two-year high of 3.1415.
The Thai baht rose 0.7 percent in the five days to 32.06 per US dollar and touched 32.03, a level not seen since May 2008.
The New Taiwan dollar completed its biggest weekly gain in more than a month on speculation the central bank will raise borrowing costs as inflation accelerates.
The NT dollar rose 0.7 percent this week to close at NT$31.819 versus its US counterpart, the biggest advance since June 19, according to Taipei Forex Inc. It gained 0.1 percent from Thursday.
Elsewhere, the Philippine peso rose 1.5 percent in the week to 44.865 versus the US dollar, India’s rupee appreciated 0.5 percent to 46.165 and Indonesia’s rupiah gained 0.1 percent to 8,940.
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