By Yoshiaki Nohara and Ye Xie Nov. 17 (Bloomberg) — The dollar traded near a 15-month low against the currencies of major U.S. trading partners as investors questioned Federal Reserve Chairman Ben S. Bernanke’s pledge of support for the greenback. The yen was poised to fall against its major counterparts before a report today forecast to show U.S. industrial production advanced last month for a fourth month, damping demand for Japan’s currency as a refuge. The euro was set to rise on speculation a rally in global equities will boost demand for higher-yielding assets. “The dollar will continue to be used as a funding currency amid rising risk appetite,” said Yoh Nihei , trading group manager at Tokai Tokyo Securities Co. in Tokyo. “The mainstream trend remains intact. The Fed will keep low rates for a while.” The Dollar Index , which IntercontinentalExchange Inc. uses to track the greenback’s value against the euro, yen, pound, Canadian dollar, Swiss franc and Swedish krona, fell 0.6 percent to 74.894 in New York yesterday. It touched 74.679, the lowest level since August 2008. The dollar was at $1.4973 per euro at 8:16 a.m. in Tokyo from $1.4970 yesterday in New York. The euro traded at 133.25 yen from 133.33 yen. The dollar fetched 88.98 yen from 89.05 yen. Yesterday it touched 88.76, the lowest level since Oct. 9. Bernanke said yesterday in a New York speech that the Fed “will help ensure that the dollar is strong and a source of global financial stability.” Economic “headwinds” of weak lending and labor markets will probably restrain the pace of the U.S. economic recovery, warranting a continuation of low borrowing costs. Economists surveyed by Bloomberg News forecast factory output in the U.S. probably rose 0.4 percent in October after gaining 0.7 percent in September. The Federal Reserve’s report is due today. The Standard & Poor’s 500 Index rose 1.5 percent in New York yesterday, and the Dow Jones Industrial Average gained 1.3 percent. To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net ; Ye Xie in New York at yxie6@bloomberg.net
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Dollar Trades at Almost 15-Month Low After Fed’s Bernanke Pledges Support
