The dollar rose to a one-week high against the yen and climbed versus the euro on speculation U.S. policy makers will this week signal they may withdraw economic stimulus measures, boosting the appeal of the nation’s assets.
The dollar advanced to a two-week high against the pound and strengthened versus 13 of the 16 major currencies before a report that economists said will show an index of U.S. leading indicators gained for a fifth month, backing the case for the Federal Reserve to wean the economy off support.
The dollar climbed to 92.05 yen as of 9:30 a.m. in London, from 91.29 yen in New York on Sept. 18, after earlier reaching 92.19 yen, the highest level since Sept. 10. It strengthened to $1.4662 per euro, from $1.4712. The U.S. currency advanced to $1.6186 versus the pound, from $1.6271, after earlier touching $1.6135, the most since Sept. 2.
The yen fell to as low as 135.18 per euro, the weakest level since Aug. 25, before trading at 134.90, from 134.33 last week. Japan’s currency declined 0.3 percent to 79.38 versus Australia’s dollar.
Crude oil fell for a third day in New York as a stronger U.S. dollar and slipping equity markets weakened investor demand for crude. A stronger U.S. currency diminishes the appeal of dollar-priced commodities that can be used to hedge against inflation. Traders are paying more than ever in the options market to protect against a steeper plunge in crude prices. Crude oil for October delivery fell as much as $1.01, or 1.5 percent, to $70.93 a barrel in electronic trading on the New York Mercantile Exchange. It was at $71.03 at 9:42 a.m. in London.
