Dollar Trades Near Two-Week High Against Euro on U.S. Services
Dollar Trades Near Two-Week High Against Euro on
June 4 (Bloomberg) -- The dollar traded near a two-week high against the euro after a report showed U.S. services industries expanded in May at a faster pace than forecast, indicating the economy is weathering record gasoline prices.
``The tone is still dollar-bullish for the day,'' said Boris Schlossberg, senior currency strategist in
The dollar traded at $1.5451 per euro at 10:30 a.m. in
The Institute for Supply Management's index of non- manufacturing businesses decreased to 51.7 last month from 52 in April. The median forecast of 73 economists surveyed by Bloomberg News was for a drop to 51. A reading of 50 is the dividing line between growth and contraction.
Company Hiring
A private report based on payroll data showed
The dollar touched a two-week high against the euro yesterday after Federal Reserve Chairman Ben S. Bernanke said via satellite to a conference in Barcelona, Spain, that policy makers are ``attentive'' to the weakened dollar's effect on inflation. He said interest rates are ``well positioned'' to promote growth and stable prices, signaling the Fed is done cutting interest rates.
``We do like the dollar higher, but a little too much was made out of Bernanke's comments,'' said Win Thin, a New York- based currency strategist at Brown Brothers Harriman & Co., in an interview on Bloomberg Television. ``They caught the short term players wrong-footed. There was a lot of short squeezes,'' meaning traders had to buy the dollar to exit bets that it will fall, minimizing losses.
Futures on the Chicago Board of Trade show a 63 percent chance the Fed will raise the 2 percent target rate for overnight lending between banks by at least a quarter-percentage point by December, compared with 59 percent odds a month ago.
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