Dollar Holds Slide as Taper Bets Pared Before Jobs, Orders Data

The dollar remained lower versus the yen and euro before U.S. data today that may signal a mixed recovery in the world’s biggest economy, damping prospects the Federal Reserve will start reducing stimulus this year.

The greenback held losses against most major counterparts ahead of figures that may show jobless claims increased and durable goods orders fell, while U.S. consumer sentiment improved. The euro remained higher amid speculation a report this week will show a pick up in inflation, reducing the need for the European Central Bank to expand monetary easing.

The dollar was unchanged at 101.28 yen as of 8:26 a.m. in Tokyo after falling 0.4 percent yesterday, its first drop in four days. It traded at $1.3567 per euro after sliding 0.4 percent to $1.3572 in New York. Europe’s shared currency bought 137.40 yen from 137.46 yesterday.

The Labor Department will probably say today jobless claims climbed to 330,000 in the week through Nov. 23, and the Commerce Department may announce that bookings for goods meant to last at least three years fell 2 percent in October, according to Bloomberg News surveys.

A final reading of the Thomson Reuters/University of Michigan consumer sentiment index due today may show the gauge was at 73.1 this month, according to the median estimate of economists surveyed by Bloomberg News. That compares with an initial figure of 72 and an October level of 73.2.

Fed policy makers will pare the monthly pace of bond buying, which tends to debase the U.S. currency to $70 billion at their March 18-19 meeting from the current pace of $85 billion, according to the median of 32 economist estimates in a Bloomberg poll this month.

(Source: Bloomberg)