Dollar Falls to Six-Week Low as CIT Prospects Boost Risk Demand

[Enivid]

The dollar dropped to a six-week low against the euro while the yen slid after stocks gained amid speculation CIT Group Inc. will avoid bankruptcy, encouraging higher-yield demand.

New Zealand’s dollar climbed versus its U.S. counterpart to the strongest level since June 2 and the Canadian currency advanced after commodity prices rose. The pound climbed the most in more than a week as a report showed asking prices for U.K. homes increased this month.

“People are looking for risk assets, not with a lot of conviction, but with equities there is some appetite,” said Brian Kim, a foreign-exchange strategist in Stamford, Connecticut, at UBS AG, the world’s second-largest currency trader. “They’re leaning away from safe havens, and the dollar and yen kind of suffered.”

The U.S. currency declined 0.9 percent to $1.4232 per euro at 4:12 p.m. in New York, from $1.4102 on July 17. It reached $1.4249, the weakest level since June 5. The yen depreciated 0.9 percent to 134.10 per euro from 132.85 after trading at 134.76, the weakest level since July 3. Japan’s currency traded at 94.26 versus the dollar, compared with 94.19.

From Bloomberg News.