London, United Kingdom (PressExposure) June 13, 2009 -- The dollar strengthened for a second day against the euro as Asian stocks extended a global slump, spurring demand for the relative safety of the U.S. currency.
The euro declined to the lowest level in almost a week versus the greenback on speculation European Central Bank officials will today signal they plan to take further unconventional measures to keep down borrowing costs. Asian currencies weakened, led by the South Korean won, on concern a U.S. jobs report today will show the global economy continues to deteriorate, damping the appetite for emerging-market assets.
"Riskier investments are being unwound, as reflected by the declines in Asian equities," said Lucas McEver, Peregrine's Head of Foreign Exchange. "Against that backdrop, the yen is likely to strengthen beyond 95 per dollar while the greenback will probably be bought versus other major currencies," the Morgan Singleton Associates President said.
The dollar advanced to $1.3557 per euro as of 1:18 p.m. in Tokyo from $1.3600 yesterday in New York, when it reached $1.3722, the highest since March 23. The U.S. currency rose to 95.48 yen from 95.30. The yen traded at 129.44 per euro from 129.61, after earlier climbing to 128.87, the strongest level since April 29.
The won slumped 2 percent to 1,268.75 per dollar, and the Malaysian ringgit declined 0.7 percent to 3.5555. The Dollar Index, which the ICE uses to track the U.S. currency against the euro, yen, pound, Swiss franc, Canadian dollar and Swedish krona, rose for a second day, gaining 0.3 percent to 82.770.