Dollar Set for Longest Slump Since 2013 as Data Dim Rate Outlook

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A gauge of the dollar is set for a fifth week of declines, its longest slump since 2013, as weak U.S. economic data fueled speculation the Federal Reserve will delay raising interest rates.

The greenback is the worst performer this week among 10 developed-nation peers after U.S. data showed producer prices unexpectedly fell while retail sales were little changed in April. The fewest claims for jobless benefits in 15 years signaled the labor market continues to strengthen even as the world’s largest economy struggles to regain momentum.

The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major trading partners, was little changed at 1,150.89 at 9:08 a.m. in Tokyo. It closed at 1,150.80 on Thursday, the lowest since Jan. 21. It has dropped 4.4 percent in the past five weeks, the longest slump since October 2013.

The greenback was at 119.21 yen from 119.18, set for a 0.5 percent weekly loss. It climbed 0.1 percent to $1.1399 versus the euro, paring its loss since May 8 to 1.8 percent.

The dollar has dropped 1.2 percent this week, the most among 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes.

Source : Bloomberg

Gold Futures Rise to 12-Week High as Dollar Drops; Silver Gains

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Gold and silver futures rose to the highest since February as the dollar’s decline boosted demand for the precious metals as alternative investments.

The greenback slumped against a basket of 10 currencies to the lowest since January after a government report showed Wednesday that U.S. retail sales stalled in April, damping prospects for an increase in interest rates by the Federal Reserve. On Thursday, gold climbed for the third straight day, the longest rally in seven weeks.

Higher rates curb gold’s appeal because the metal generally offers returns only through price gains, while a weaker dollar can increase demand for the metal as a store of value. U.S. economic indicators have missed expectations since January, according to an index compiled by Citigroup Inc., suggesting policy makers aren’t close to raising their benchmark.

On the Comex in New York, gold futures for June delivery rose 0.6 percent to $1,225.70 an ounce at 10:17 a.m. Earlier, the price reached $1,227.70, the highest for a most-active contract since Feb. 17. The metal topped the 200-day moving average for the first time since February.

Most economists in a Bloomberg survey late last month predicted the central bank will start tightening in September, rather than at next month’s meeting. The Fed has held rates near zero since 2008.

Source: Bloomberg

Asian Stocks Track Record-Setting S&P 500 Higher as Bonds Climb

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Asian stocks rose, set for their first weekly gain this month, after the dollar’s retreat helped send the Standard & Poor’s 500 Index to a fresh record. Bonds tracked gains in the U.S. and Europe, while oil pared its advance.

The MSCI Asia Pacific Index added 0.4 percent by 9:20 a.m. in Tokyo, as benchmark gauges from Japan to Australia climbed. S&P 500 futures were little changed after technology shares drove the index up 1.1 percent to an all-time high. The Bloomberg Dollar Spot Index was near a four-month low. Yields on 10-year Japanese notes fell for the first time in four days as similar maturity Treasuries held onto their rebound.

Bond markets took a breather from the selloff that has erased more than $400 billion in value the past three weeks, unsettling equities. Prospects the weaker dollar will make American products more competitive helped stoke the S&P 500’s first increase this week, with disappointing economic data damping the outlook for higher U.S. interest rates.

Source : Bloomberg

Japan Stocks Follow U.S. Shares Higher as Consumer Lenders Rise

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Japanese stocks rose, with the Topix index extending its weekly advance, after U.S. shares climbed to records. Consumer lenders and banks gained.

The Topix added 0.6 percent to 1,601.27 as of 9:01 a.m. in Tokyo, poised for a 0.9 percent increase this week. The Nikkei 225 Stock Average climbed 0.6 percent to 19,688.60.

The Standard & Poor’s 500 Index closed at an all-time high Thursday as a weaker dollar boosted multinational companies. Treasuries advanced after a measure of inflation unexpectedly declined, calling into question how soon the Federal Reserve will be able to raise interest rates.

Source : Bloomberg

U.S. Stocks Rise as Dollar Extends Slide, Bond Selloff Eases

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U.S. stocks rose for the first time this week as the dollar weakened to a four-month low and a bond-market selloff showed signs of easing. Treasuries gained before a sale of 30-year bonds.

The Standard & Poor’s 500 Index increased 0.5 percent at 9:31 a.m. in New York, halting a three-day slide. The Stoxx Europe 600 Index gained 0.3 percent. The Bloomberg Dollar Spot Index retreated 0.5 percent. The yield on 10-year Treasuries fell four basis points to 2.25 percent while German bunds swung between gains and losses.

The dollar is heading for a fifth weekly decline, the longest streak since October 2013, as economic data undermine prospects for higher borrowing costs any time soon. Fewer Americans than forecast filed for unemployment benefits last week while wholesale prices unexpectedly declined in April, after data Wednesday indicated retail sales stagnated.

Source: Bloomberg