Euro Falls Most in 2 Months as Rally Overheats; Yen Snaps Losses

Berita Jalatama : The euro fell the most against the dollar in two months amid speculation its six-month rally was due for a pause even as data signaled improvements in the European economy.

The yen snapped nine weeks of losses as Japanese Prime Minister Shinzo Abe said Jan. 1 the nation was halfway to escaping deflation. New Zealand’s dollar advanced against all 16 major counterparts on bets for an interest-rate increase. Federal Reserve Chairman Ben S. Bernanke said the U.S. is poised for faster growth before a Jan. 10 report forecast to show 195,000 jobs were added in December.

The euro dropped 1.2 percent to $1.3589 this week in New York after reaching $1.3893 on Dec. 27, the strongest level since October 2011. The greenback fell 0.3 percent to 104.86 yen after rising to 105.44 on Jan. 2, the weakest level since October 2008. Japan’s currency climbed 0.6 percent to 142.48 per euro.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, rose 0.3 percent to 1,026.23, the third-straight weekly rally.

(Source: bloomberg)