U.S. Currency Rises on Speculation Decline Too Quick to Maintain

The greenback climbed against the euro for the first time in four days on speculation the dollar's drop was too rapid to maintain.

The U.S. currency recuperated after trading yesterday at its lowest level in more than a week. It had weakened due to concerns the Federal Reserve will be slower to raise interest rates than policy makers in other nations.  The central bank in Russia probably bought $750 million to $1 billion as it sought to slow the ruble’s progress, traders said.

The dollar appreciated 0.3 percent to $1.4679 against the euro at 12:04 p.m. in New York, from $1.4722 yesterday, when it reached $1.4762, the weakest level since Sept. 24. The dollar was little changed at 88.78 yen, compared with 88.82, after earlier reaching 88.01, the lowest level since Jan. 23. The euro decreased 0.4 percent to 130.31 yen, from 130.76.

Sweden’s krona was the greatest failure against the dollar among the 16 most traded currencies tracked by Bloomberg due to concerns the nation’s banks face additional losses on mortgages in Latvia. The Swedish currency weakened as much as 1.8 percent to 7.0584 against the dollar in the greatest drop since Sept. 1,when it fell by 2.5 percent.

Swedbank AB and SEB AB in Stockholm, are trying to contain widening loan losses in the region. The Latvian Prime Minister is trying to exceed mortgage holders’ liability.