Dollar Touches Week High Before Retail Sales Report, Yen Slides

The dollar touched the highest in almost a week versus the yen before a report today that may show U.S. retail sales climbed for a fourth month.

The Bloomberg U.S. Dollar Index advanced for a second day amid speculation stronger data will bolster the case for the Federal Reserve to scale back its asset purchases. The yen held declines against all of its 16 major counterparts after Japan’s machine orders fell in June, spurring bets that the Bank of Japan will step up stimulus measures. The euro strengthened versus most of its peers before a report that may show German economic confidence is at a five-month high.

The dollar rose 0.5 percent to 97.43 yen as of 9:39 a.m. in Tokyo after earlier touching 97.44, the strongest since Aug. 7. It was little changed at $1.3293 per euro. Japan’s currency slid 0.5 percent to 129.49 per euro.

The Bloomberg U.S. Dollar Index added 0.2 percent to 1,022.74 after gaining 0.4 percent yesterday, its first advance in more than a week.

The U.S. Commerce Department will probably say today retail sales climbed 0.3 percent last month after a 0.4 percent advance in June, according to the median forecast of economists surveyed by Bloomberg News.

(Source: Bloomberg)

WTI Trades Near Two-Week High as U.S. Manufacturing Strengthens

West Texas Intermediate oil traded near the highest level in nine days and poised for a weekly advance as manufacturing grew last month in the U.S., the world’s biggest crude consumer.

Futures were little changed in New York after gaining the most in more than three weeks yesterday. The Institute for Supply Management’s U.S. factory index expanded at the fastest pace in two years in July, according to the Tempe, Arizona-based group. Libya’s head of oil security resigned as labor protests shut crude export terminals in the country.

WTI for September delivery was at $107.73 a barrel, down 16 cents, in electronic trading on the New York Mercantile Exchange at 10 a.m. Sydney time. The volume of all futures traded was 57 percent below the 100-day average. The contract increased $2.86, or 2.7 percent, to $107.89 yesterday, climbing the most since July 10 and the highest close since July 19. Prices are up 2.9 percent this week.

Brent for September settlement was 4 cents lower at $109.50 a barrel on the London-based ICE Futures Europe exchange. It rose $1.84 yesterday. The European benchmark contract was at a premium of $1.80 to WTI from $1.65 yesterday.

Colonel Ali Ahrash, the head of security for oil and gas infrastructure, has resigned, Deputy Oil Minister Omar Shakmak said yesterday in Washington. Libyan crude exports will drop by almost 80 percent after terminals were shut amid labor protests, Oil Minister Abdulbari Al-Arusi said July 31.

(Source: Bloomberg)

Dollar Holds Losses After Fed Flags Inflation Risk, Aussie Falls

The dollar remained lower against its major peers after the Federal Open Market Committee said persistently low inflation could hamper U.S. economic expansion, spurring bets monetary stimulus will be maintained.

The greenback traded near a six-week low versus the euro before a report tomorrow expected to show U.S. hiring slowed in July. Federal Reserve Chairman Ben S. Bernanke said last month a reduction in stimulus would depend on the economy’s performance. The pound traded at the lowest in more than four months against the euro before policy decisions from the Bank of England and the European Central Bank. Australia’s dollar slid to levels not seen since 2010, and New Zealand’s dollar slid.

The dollar was little changed at $1.3300 per euro as of 8:30 a.m. in Tokyo from yesterday, when it touched $1.3345, the weakest since June 19. The U.S. currency lost 0.1 percent to 97.78 yen, after yesterday dropping to 97.59, the lowest since June 27. The yen gained 0.1 percent to 130.05 per euro.

Sterling slipped 0.2 percent to 87.61 pence per euro, after reaching 87.66 yesterday, the least since March 12. The British currency fell 0.2 percent to $1.5178.

The Aussie slumped 0.4 percent to 89.48 U.S. cents and reached as low as 89.27, the weakest since September 2010. New Zealand’s kiwi lost 0.3 percent to 79.60 U.S. cents.

(Source: Bloomberg)