Dollar Extends Losses on Falling Existing Homes Sales

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Dollar Extends Losses on Falling Existing Homes SalesThe dollar dropped for the second straight day against its major counterparts after a report indicated that agreements to buy existing homes grew slower than expected, fuelling bets the Federal Reserve won’t hike interest rates soon.

The U.S. currency fell 0.5 percent to trade at 107.62 yen, and plunged 0.4 percent to $1.2716 per euro. The yen advanced 0.1 percent to steady at 136.85 versus the euro after earlier reaching 137.47, its lowest level since Oct. 9.

“There’s a little bit of reaction on the pending-home-sales data,” Brad Bechtel, a Stamford, Connecticut-based managing director of Faros Trading LLC, told Bloomberg News. Today’s dollar move is a reflection of “pre-FOMC, pre-GDP — these are going to be the two big catalysts. The market is a little quiet ahead of that.”

The U.S. pending home sales gauge rose 0.3 percent after declining 1 percent in August, reported the National Association of Realtors. Economists had expected the measure to increase 1 percent.

Meanwhile, the Brazil’s real touched a six-year low after President Dilma Rousseff won the presidential election runoff by the narrowest margin since pre-1945. Rousseff trounced Senator Aecio Neves, who is the former Minas Gerais state governor. The real dropped 2.2 percent to trade at 2.5279 per dollar and hit 2.5564, its weakest point since December 2008.

The Russia’s ruble slid for the fourth straight day following failure of central bank’s responses to stop the currency from depreciating further. Speculation was also high that Russia may take drastic measures against Ukraine after parties allied to the European Union carried the day in weekend polls. The ruble fell 1.1 percent to 47.4303 versus the central bank’s benchmark euro-dollar basket. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com