FOREX-Dollar under pressure, commodity currencies jump

Mon Nov 9, 2009 5:37am GMT
[-] Text [+]

* Dollar on the defensive, high-yielders jump

* G20 and IMF statements weigh on dollar

* Aussie firms on better-than-expected housing finance data

* Fonterra payout lifts kiwi

By Kaori Kaneko

TOKYO, Nov 9 (Reuters) - The dollar fell on Monday after a G20 meeting and U.S. unemployment data did little to alter the view that U.S. rates would stay low for a while, supporting shares and the Australian and New Zealand dollars.

The Australian dollar advanced back towards its high for the year, helped by a pick-up in Australian housing finance, while the New Zealand dollar rose after dairy giant Fonterra lifted its forecast payout to farmers.

The euro also edged towards the year's high against the greenback, which dropped to its lowest in two weeks against a basket of currencies, dented by the view that low interest rates meant it would continue to be a funding currency for higher-yielding trades.

Some dealers cited an IMF report as also weighing on the dollar, although others said this was just an excuse to sell the greenback. The report said that while the dollar had depreciated in recent months, it still remained on the "strong" side. See r.reuters.com/kyp48fContinued...

 
by Name by Symbol