Bloomberg News

Dollar Rises on Speculation U.S. Consumer Confidence Rebounded

September 15, 2011

Sept. 16 (Bloomberg) -- The dollar strengthened against most of its peers before a report today that may show consumer confidence rebounded from its lowest in more than two years, curbing speculation the U.S. economy is slowing down.

The euro was set for its first weekly gain against the yen in three weeks on prospects costs for dollar funding will drop after the European Central Bank said it will lend U.S. currency to euro-area banks. The yen weakened versus the greenback as Asian stocks extended global gains in equities.

“We’re not expecting the U.S. economy to return to double dip recession,” said Thomas Averill, a director in Sydney at Rochford Capital, a currency and interest-rate risk management company. “There’s quite a solid base in dollar-yen.”

The dollar advanced to $1.3838 per euro as of 10:37 a.m. in Tokyo from $1.3877 in New York yesterday. The U.S. currency bought 76.83 yen from 76.70. The euro traded at 106.34 yen from 106.43 and has gained 0.3 percent since Sept. 9.

The dollar has risen 3.3 percent in the past month, the best performer among the 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes.

Preliminary data will show the Thomson Reuters/University of Michigan index of consumer sentiment rose to 57 this month after falling to 55.7 in August, the least since November 2008, according to the median estimate of economists surveyed by Bloomberg News.

--Editors: Nate Hosoda, Benjamin Purvis

To contact the reporters on this story: Kristine Aquino in Singapore at kaquino1@bloomberg.net; Mariko Ishikawa in Tokyo at mishikawa9@bloomberg.net

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net


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