The US Dollar Falls

Sept. 30 (Bloomberg) -- The dollar dropped against most of its major counterparts and headed for a second straight quarterly loss against the euro as evidence the global economy is recovering boosted demand for higher-yielding assets.

Dollar’s Status
The greenback’s share of global currency reserves fell in the second quarter to 62.8 percent, from 65 percent in the first three months of the year, an IMF report showed. The euro’s share rose to 27.5 percent, from 25.9 percent.

ECB Lending
The euro gained versus the dollar earlier today after the ECB said it will lend banks 75.2 billion euros ($110 billion) for 12 months at the current benchmark interest rate of 1 percent to boost credit flows and aid the recovery in the region’s economy. Economists had expected demand at today’s auction to be 137.5 billion euros, according to the median of 16 forecasts in a Bloomberg News survey.

Australian Retail
The Australian dollar rose against all of its major counterparts today as a report from the Bureau of Statistics showed retail sales climbed 0.9 percent in August, more than then 0.5 percent increase forecast by economists.

The Yen

The Yen

The Japanese Yen fell against the dollar after Finance Minister Hirohisa Fujii said he may intervene in foreign-exchange markets to stabilize the Yen.

US Dollar Rises

US Dollar

The US Dollar rose against all majors with the announcement by Russia with regards to its International Reserves.

Russia will keep the share of U.S. Treasuries in its International Reserves at about 30 percent.
Russia will avoid diversifying into Australian and Canadian dollars because of liquidity concern, the central bank said.

The Dollar Dropped

Sept. 17 (Bloomberg) -- The dollar dropped to within a penny of the lowest versus the euro in a year as a manufacturing gain and an unexpected drop in initial jobless claims spurred investors to sell the greenback and buy higher-yielding assets.

US Dollar

US Dollar Downtrend

The dollar is in a downtrend after falling below 94.76 yen, a key price based on the Fibonacci sequence of numbers. That level is a 50 percent retracement from a two-month high of 97.79 reached on Aug. 7 to a six-month low of 91.74 reached on July 13.

The next level of support will be 94.05, which represents a 38.2 percent retracement of the decline.

Forex News

US Economic Reports
US economic reports released this morning saw durable goods orders decline sharply in June, posting a monthly decline of 2.5% versus a downwardly revised increase of 1.3% from May. The excluding transports durable goods orders improved to 1.1% compared with a downwardly revised 0.8% increase a month prior. The Fed's Beige Book revealed the pace of economic decline had moderated or stabilized at a low level in most districts adding that the manufacturing sector remained subdued but slightly more positive than in the past. The Fed said there was still slack in the labor markets, with most sectors reducing jobs or holding steady and net employment falling.

Low Dollar

The dollar traded near a six-week low versus the euro as corporate earnings beat analysts’ estimates, reducing demand for relative safety.