The dollar advanced from a two-month low against the euro in Forex Trading Online before U.S. reports this week forecast to show stronger growth and increasing consumer confidence.
The euro slid versus the dollar on speculation its 5.5 percent gain over the past two weeks may be hard to sustain as bets against the 17-nation currency were reversed. The pound fell before data that may show the U.K.’s growth slowed in the fourth quarter.
The dollar appreciated 0.2 percent to $1.3599 versus the euro at 8:47 a.m. in New York, from $1.3621 on Jan. 21, after earlier sliding to $1.3647, the weakest level since Nov. 22. The greenback gained 0.4 percent to 82.87 yen, from 82.57. The euro was little changed at 112.63 yen, compared with 112.48.
The U.S. Conference Board’s confidence index rose to 54.2 this month from 52.5 in December, according to the median forecast of 56 economists in a Bloomberg News survey before tomorrow’s report from the New York-based research group.
Gross domestic product climbed at a 3.5 percent annual pace in the fourth quarter, compared with a 2.6 percent rate in the prior three months, a separate survey showed before the Commerce Department’s report on Jan. 28.
The euro has appreciated 1.8 percent so far this year in a measure of the currencies of 10 developed nations, according to Bloomberg Correlation-Weighted Currency Indexes. The dollar is little changed, while the yen has dropped 2.3 percent.