YEREVAN, November 27. /ARKA/. The dollar fell against the yen for a third day, the longest streak in a month, after data raised concern the U.S. economic recovery has plateaued.
The yen rose versus most of its 16 major peers as trading patterns signaled its recent declines were excessive amid speculation traders are reducing bearish positions into month-end. An index of the U.S. currency was little changed as a gauge of whether U.S. economic data has beaten or fallen short of forecasts slid to the lowest level since August. The Norwegian krone was little changed before representatives from oil-producing countries meet to discuss crude output.
“Softer data and falling U.S. yields have encouraged people to unwind their long dollar positions,” said Jeremy Stretch, head of foreign exchange strategy at Canadian Imperial Bank of Commerce in London.
“The primary concern for the dollar was the weight of positioning, so a modest washout will be encouraging.” A long position is a bet that an asset price will advance.
The Bloomberg Dollar Spot Index, which tracks the currency versus 10 major peers, dropped 0.1 percent to 1,096.36 at 8:33 a.m. London time. It ended the day at 1,100.97 on Nov. 24, the highest close since March 2009. The dollar fell 0.3 percent to 117.4 yen and was little changed at $1.2497 per euro. –0–
