Dollar Poised for Weekly Gain Before Consumer Data, Fed Speakers

Bloomberg (27/9) -- A gauge of the dollar was poised for its first five-day gain in four weeks before data forecast to show spending in the U.S. improved, signs of strength that may prompt an easing in monetary stimulus. The U.S. currency is set to rise this week against the euro after Federal Reserve Bank of Kansas City President Esther George said labor-market gains warrant tapering the U.S. central bank’s bond purchases immediately. Fellow voting members on the policy committee, William C. Dudley and Charles Evans are also scheduled to speak today, as is European Central Bank President Mario Draghi. “The U.S. economy is definitely improving,” said Peter Dragicevich, a currency strategist in Sydney at Commonwealth Bank of Australia, the nation’s biggest lender. “All the Fed’s decision did was delay the inevitable, and it hasn’t really changed course. George is typically the most hawkish voting member of the Fed, so that might give the U.S. dollar a bit of support.” The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major currencies, was little changed at 1,015.22 as of 10:26 a.m. in Tokyo, set for a 0.2 percent weekly gain. The dollar traded at $1.3487 per euro from $1.3489 yesterday and $1.3524 on Sept. 20. It lost 0.1 percent to 98.94 yen, down 0.4 percent this week. Japan’s currency was at 133.43 per euro and is up 0.7 percent this week. The greenback has fallen 1.9 percent since Aug. 30 versus its European counterpart, extending its quarterly decline to 3.5 percent. The yen has lost 2.8 percent this month against the euro and is set for a 3.4 percent drop since June 28.