Our government is the reason for the weak dollar. The Federal Reserve is printing money, time-and-time again, to buy Obama’s debt.
The dollar weakened against most its major counterparts amid better-than-forecast factory data from China and bets the U.S. central bank will add to monetary stimulus.
The U.S. currency fell versus the euro and the yen before the Federal Reserve starts a policy meeting tomorrow amid forecasts it will expand bond-buying plans. Japan’s currency touched the highest in almost two weeks versus the euro after Italy’s Prime Minister Mario Monti said he intends to resign. Mexico’s peso advanced after a report showed exports increased 13 percent from a year earlier.
“You’re starting to see a slight divergence appear in thecurrency markets, as the Chinese data remained quite favorable,” said Nick Bennenbroek, head of currency strategy atWells Fargo & Co. in New York. “Despite what is happening in Italy, markets are still relatively calm. People are looking ahead to the Federal Reserve this week, which should be an event that is positive for risk and negative for the dollar.”
The dollar fell 0.1 percent to $1.2941 per euro at 5 p.m. in New York. It dropped 0.2 percent to 82.36 yen. The Japanese currency was 0.1 percent higher against the euro at 106.58, after reaching 105.98, the strongest since Nov. 28.
The U.S. currency declined versus 10 of its 16 most-traded counterparts. It sank 0.3 percent versus the New Zealand dollarand retreated 0.2 percent against the pound.
[…]The U.S. Federal Open Market Committee meets for the last time this year on Dec. 11-12. It will consider whether to expand purchases of assets after its so-called Operation Twist program of swapping $45 billion a month in short-term Treasuries for long-term debt expires this month.
“There’s a good chance that the Fed will announce a new round of money printing and bond buying,” which would be negative for the dollar, said Imre Speizer, a strategist in Auckland atWestpac Banking Corp. (WBC)