Korean Job Discussion Forums

[mrsquirrel]

ollar Heads for Biggest Weekly Drop Against Euro in Two Years

By Kosuke Goto

March 28 (Bloomberg) -- The dollar fell against the euro, headed for its biggest weekly decline since January 2006, as traders increased bets that the Federal Reserve will cut interest rates again to avert a recession.

The dollar dropped versus 13 of the 16 most-traded currencies this week, falling 2.5 percent versus the euro before a government report today that is forecast by economists to show spending in the U.S. posted the smallest gain in more than a year last month. New Zealand's dollar rose after a government report showed the nation's economic growth accelerated at the fastest annual pace in three years in the fourth quarter.

``The U.S. may have already entered into a recession,'' said Michiyoshi Kato, a senior vice president of currency sales at Mizuho Corporate Bank Ltd. in Tokyo, a unit of Japan's second-largest publicly traded lender by assets. ``The Fed will keep lowering rates to defuse criticism that it always falls behind the curve. I am super-dollar bearish.''

The dollar fell to $1.5810 per euro at 10:07 a.m. in Tokyo form $1.5779 in late New York yesterday and $1.5431 a week ago, a 2.5 percent drop. The U.S. currency was at 99.55 yen from 99.65 yesterday and 99.58 a week ago.

The dollar may fall to $1.60 a euro next month, Kato forecast. That would surpass the low of $1.5903 reached March 17, the weakest level since the European currency debuted in 1999.

The New Zealand dollar rose to 80.63 U.S. cents from 80.35 cents in New York yesterday. It also climbed to 80.23 yen from 80.06 yen yesterday.

Japan's statistics bureau will release at 8:30 a.m. its reports on the jobless rate in February, overall household spending in February and the consumer price index.

To contact the reporters on this story: Kosuke Goto in Tokyo at [email protected];

[Bibbitybop]

USA! USA! USA!