Dollar Sinks to Eight-Week Low Versus Yen as Growth Seen Slower
By Kanako Chiba
quote.bloomberg.com
Tokyo, May 2 (Bloomberg) -- The dollar fell to an eight-week low against the yen on expectations a report tomorrow will show U.S. unemployment is rising, feeding concern the nation's recovery from a recession is faltering.
The U.S. currency also declined after Treasury Secretary Paul O'Neill yesterday indicated the government wouldn't try to end a three-month slide, which has brought it down 4.8 percent against the euro and 4.2 percent versus the yen.
``This market is looking for reasons to sell the dollar on any weak economic report or official comment,'' said Hiroshi Sakuma, a foreign exchange associate director at Barclays Bank Plc.
The dollar dipped below 127 yen for the first time since March 7 and recently traded at 127.10 yen, versus 127.41 in New York yesterday. Against the euro, it hovered at 90.72, after being as weak as 91.13, a level not seen since Nov. 1.
The U.S. unemployment rate probably rose to 5.8 percent last month, even as payrolls increased by 60,000, according to a Bloomberg News survey of economists, matching December's rate, which was a 6 1/2-year high. |
