“The dollar approached a one-month low against the euro before a U.S. report that economists said will show factory orders rebounded in February, reducing demand for the relative safety of the world’s reserve currency.
The Dollar Index dropped for a fourth day before the Federal Open Market Committee releases minutes of its March meeting, where policy makers raised their assessment of the economy. The euro rose against most of its major peers after a German parliamentary leader said there’s no need to discuss a bailout for Spain. Australia’s dollar fell after the central bank signaled it may resume cutting interest rates.
“The U.S. economic news, because it has been better, is promoting some risk appetite,” and undermining the dollar, said Michael Derks, chief strategist at FXPro Financial Services Ltd. in London. “For now the market is minded to focus on the more positive developments. The euro is less vulnerable against the dollar than it was a month ago and there’s also a suspicion that the FOMC minutes might show a bias toward further easing.”
The dollar fell 0.2 percent to $1.3342 per euro at 6:33 a.m. New York time after declining to $1.3386 on March 27, the weakest since Feb. 29. The U.S. currency was little changed at 82.04 yen. It earlier dropped to 81.56, the lowest since March 9. The euro gained 0.1 percent to 109.47 yen.
The Dollar Index (DXY), which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six U.S. major trading partners, fell 0.1 percent to 78.794….”
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