The dollar posted its biggest two- day drop against the euro since December as traders withdrew bets on the greenback.
The U.S. dollar also slid versus the Swiss franc, the yen and the Australian currency as the sell-off versus the euro triggered preset orders. The dollar earlier increased as much as 0.9 percent versus the euro as Citigroup Inc. and Bank of America Corp. tumbled on speculation the U.S. government may take over the banks, encouraging demand for a haven.
“It looks to be a Friday squeeze,” said Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. “Stops were at $1.2650 to $1.2660 per euro, and they were taken out while the market dozed. Fast money is dumping dollars.”
The dollar lost 1.3 percent to $1.2846 per euro at 4:26 p.m. in New York, from $1.2674 yesterday, when it decreased 1.1 percent. The two-day drop was the biggest since Dec. 17. The dollar touched $1.2513 on Feb. 18, the strongest since Nov. 21. Japan’s currency gained 1.1 percent to 93.16 per dollar from 94.20, declining yesterday beyond 94 for the first time since Jan. 7. The yen depreciated 0.2 percent to 119.63 per euro from 119.37.
The ICE’s Dollar Index, which tracks the U.S. currency versus the euro, yen, pound, Canadian dollar, Swedish krona and Swiss franc, fell for a second day, dropping 1.1 percent to 86.488. It touched 88.254 on Feb. 18, the strongest level since Nov. 21, when it reached a 2 1/2-year high.
The dollar appreciated earlier versus most of its major counterparts as a drop in global stocks encouraged investors to take refuge in the world’s reserve currency. The greenback erased its gains at about 11:45 a.m. New York time as traders took off bets.
From Bloomberg News.
The U.S. dollar also slid versus the Swiss franc, the yen and the Australian currency as the sell-off versus the euro triggered preset orders. The dollar earlier increased as much as 0.9 percent versus the euro as Citigroup Inc. and Bank of America Corp. tumbled on speculation the U.S. government may take over the banks, encouraging demand for a haven.
“It looks to be a Friday squeeze,” said Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. “Stops were at $1.2650 to $1.2660 per euro, and they were taken out while the market dozed. Fast money is dumping dollars.”
The dollar lost 1.3 percent to $1.2846 per euro at 4:26 p.m. in New York, from $1.2674 yesterday, when it decreased 1.1 percent. The two-day drop was the biggest since Dec. 17. The dollar touched $1.2513 on Feb. 18, the strongest since Nov. 21. Japan’s currency gained 1.1 percent to 93.16 per dollar from 94.20, declining yesterday beyond 94 for the first time since Jan. 7. The yen depreciated 0.2 percent to 119.63 per euro from 119.37.
The ICE’s Dollar Index, which tracks the U.S. currency versus the euro, yen, pound, Canadian dollar, Swedish krona and Swiss franc, fell for a second day, dropping 1.1 percent to 86.488. It touched 88.254 on Feb. 18, the strongest level since Nov. 21, when it reached a 2 1/2-year high.
The dollar appreciated earlier versus most of its major counterparts as a drop in global stocks encouraged investors to take refuge in the world’s reserve currency. The greenback erased its gains at about 11:45 a.m. New York time as traders took off bets.
From Bloomberg News.