Feb. 2 (Bloomberg) -- The dollar fell against the majority of its most-traded counterparts as stocks and growth-linked currencies rose, boosting demand for higher-yielding assets.
The dollar earlier rose against the euro as Greece struggled to reach an agreement with its bondholders on cutting the nation’s debt burden, adding to concern Europe’s fiscal crisis will deepen. South Africa’s rand and Mexico’s peso led gains among the 16 major currencies. The yen rose to within 1 yen of a postwar high against the dollar, prompting speculation Japan will intervene to limit the currency’s gains.
“A lot more people are putting on risk by way of the dollar,” said Alan Ruskin, global head of Group-of-10 foreign- exchange strategy at Deutsche Bank AG in New York. “You’ve got a nice breakdown in dollar-Mexico and dollar-South African rand. Some of the emerging-market vehicles that have been very popular trades this year are definitely doing rather well.”
The dollar dropped 0.1 percent to 76.13 yen at 11:03 a.m. in New York and reached 76.05 yen, approaching the postwar record of 75.35 set on Oct. 31. The greenback fell 0.1 percent to $1.3175 per euro. The shared currency was little changed at 100.33 yen.
South Africa’s rand rose 0.9 percent to 7.6234 per dollar, having appreciated 2.2 percent so far this week. Mexico’s peso added 0.7 percent to 12.7988 per dollar. The Standard & Poor’s 500 Index rose 0.2 percent.
--Editors: Kenneth Pringle, Greg Storey
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