So, an improving US economy is bad for our currency?
The dollar and the yen were set for their biggest weekly declines against the euro in more than a month as signs the U.S. economy is picking up damped demand for haven currencies.
The yen was 0.3 percent from a two-week low versus Europe’s common currency ahead of a U.S. report today forecast to show the pace of hiring quickened last month. The dollar was poised to weaken against 15 of its 16 major peers this week before Federal Reserve Bank of Philadelphia President Charles Plosser and Fed Bank of Dallas President Richard Fisher speak today. Gains in the euro were limited before German Chancellor Angela Merkel outlines her stance for a Dec. 9 European summit.
“We’re actually seeing the U.S. economy being one of the few bright spots out there,” said Robert Rennie, Sydney-based chief currency strategist at Westpac Banking Corp., Australia’s second-largest lender. “Better U.S. data is in the short term a modest negative for the U.S. dollar.”