The dollar weakened for a second day against the euro before a government report that economists estimate will show sales of new U.S. homes declined to the lowest level in more than 17 years.
South Korea’s won declined the most in a month versus the U.S. currency and India’s rupee fell for a third day on concern that the global economy will slow further, hurting demand for Asian exports. Japan’s currency headed for its largest annual gain in more than two decades on speculation the credit crisis will spread. HFA Holdings Ltd., an Australian hedge fund, said the company halted redemptions from three of its funds.
“The U.S. dollar is going to go through a period of weakness over the next few months or so,” said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia Ltd., the nation’s biggest mortgage lender. “The economy is very weak and it might go into a period of deflation.”
The dollar declined to $1.4000 per euro at 7:53 a.m. in London from $1.3944 late in New York yesterday. It slid to $1.4719 on Dec. 18, the weakest level since Sept. 25. The yen was quoted at 126.28 per euro following a 1.3 percent loss yesterday. It traded at 90.26 per dollar after falling 1 percent. The Japanese currency reached a 13-year high of 87.14 on Dec. 17.
Against the greenback, Korea’s won fell 2.3 percent to 1,338. India’s rupee declined 1.3 percent to 48.64. The MSCI Asia- Pacific Index of regional shares dropped 1.2 percent.
From Bloomberg News.
South Korea’s won declined the most in a month versus the U.S. currency and India’s rupee fell for a third day on concern that the global economy will slow further, hurting demand for Asian exports. Japan’s currency headed for its largest annual gain in more than two decades on speculation the credit crisis will spread. HFA Holdings Ltd., an Australian hedge fund, said the company halted redemptions from three of its funds.
“The U.S. dollar is going to go through a period of weakness over the next few months or so,” said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia Ltd., the nation’s biggest mortgage lender. “The economy is very weak and it might go into a period of deflation.”
The dollar declined to $1.4000 per euro at 7:53 a.m. in London from $1.3944 late in New York yesterday. It slid to $1.4719 on Dec. 18, the weakest level since Sept. 25. The yen was quoted at 126.28 per euro following a 1.3 percent loss yesterday. It traded at 90.26 per dollar after falling 1 percent. The Japanese currency reached a 13-year high of 87.14 on Dec. 17.
Against the greenback, Korea’s won fell 2.3 percent to 1,338. India’s rupee declined 1.3 percent to 48.64. The MSCI Asia- Pacific Index of regional shares dropped 1.2 percent.
From Bloomberg News.