Battered Dollar Hits Another 15-Year Low Versus Yen
The dollar continued to struggle versus other major currencies on Monday, unable to rally after hitting its lowest since 1995 against the surging yen. There was little movement against the euro and sterling, leaving the buck near last week's lowest in eight months.
Friday's mixed jobs report did little to alleviate fears about the employment situation in the United States. With the world's largest economy still mired by joblessness and a weak housing sector, most expect the Federal Reserve will take another shot at quantitative easing next month.
The buck was at $1.3950 versus the euro, a modest improvement from an 8-month low of 1.4028. Against the sterling, the dollar held its ground near $1.5950.
Meanwhile, the dollar was stuck near Y82 versus the yen after hitting a new 15-year low of 81.36 last night. A move below 79.80 would take the buck to its lowest ever compared to the Japanese currency.
The Japanese have been frantically trying to weaken the yen in order to prop up its export-driven economy, but with interest rate gaps narrowing and the Fed's QE 2.0 set to dwarf anything that Tokyo does, the yen keeps on rising.
The dollar was little changed against the Swiss franc, not far from last week's record low of CHF 0.9554.
A summit of global finance ministers at International Monetary Fund headquarters in Washington over the weekend has failed to ease speculation of an international "currency war."
At a closing press conference at the end of the summit, Youssef Boutros-Ghali, chairman of the International Monetary and Financial Committee said there are "a number of points of friction" between nations regarding issues such as structural reforms and exchange rate management.
Trading is expected to be quiet on Monday, with many away from their desks on Columbus Day in the U.S.
Later this week, traders will focus on retail sales, inflation data, trade balance and the minutes of the recent FOMC meeting, along with a slew of corporate earnings results.