The dollar fell against most of its major counterparts as signs of global economic recovery spurred demand for higher-yielding assets including stocks.
The greenback weakened versus the New Zealand and Australian dollars on reduced demand for safety before a U.S. report tomorrow forecast to show initial jobless claims fell. Sweden’s krona appreciated versus as the nation’s trade surplus widened in November. Taiwan’s dollar rose to a 13-year high on the prospect of an increase in borrowing costs.
“January tends to be risk-on, and if you’re expecting risk assets to do well, now’s a good time to get in,” said Geoffrey Yu, a London-based currency strategist at UBS AG. “There’s some seasonality in terms of flow patterns, and if funds have fresh liquidity there’s more money to invest.”
The dollar dropped against the yen for an eighth day, decreasing 0.3 percent to 82.12 at 7:42 a.m. in New York, from 82.38 yesterday. The U.S. currency was little changed at $1.3130 versus the euro, compared with $1.3115. The euro fell 0.1 percent to 107.92 yen, from 108.06.
