The dollar swung between advances and declines against the euro as investors awaited policy decisions from the Federal Reserve and European Central Bank amid mounting evidence that economies around the world are slowing.
The euro pared its gain versus the yen after Bundesbank President Jens Weidmann said that the ECB shouldn’t exceed its mandate. European policy makers announce their next interest- rate decision tomorrow, the first since President Mario Draghi pledged to do whatever it takes to defend the single currency. The pound slid after a report showed U.K. manufacturing shrank the most in more than three years in July, while the yuan fell as a separate report showed Chinese output slowed.
The euro bought $1.2295 as of
8:51 a.m. in Tokyo after climbing 0.4 percent yesterday to $1.2304.
Photographer: Hannelore Foerster/Bloomberg
The dollar was little changed at $1.2311 per euro at 10:20 a.m. London time after earlier weakening as much as 0.3 percent and strengthening as much as 0.2 percent. The 17-nation currency was little changed at 96.21 yen, paring a gain of as much as 0.4 percent. The dollar was little changed at 78.15 yen.
The Fed concludes its two-day meeting today.
The ECB’s independence “requires it to respect and not overstep its own mandate,” Weidmann said in an interview with former central bank chief Helmut Schlesinger that was conducted on June 29 and published on the Bundesbank’s website today.
Sterling fell 0.2 percent to $1.5642, and depreciated 0.3 percent to 78.72 pence per euro.
A gauge of U.K. factory output fell to 45.4 from a revised 48.4 in June, London-based Markit Economics said today. The index was weaker than any of the 30 forecasts in a Bloomberg News survey. A reading below 50 indicates contraction.
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