:think:
from Bloomberg:
Dollar Heads for Biggest Weekly Drop Against Euro in a Month By Kosuke Goto and Yumi Teso
March 28 (Bloomberg) -- The dollar headed for its biggest weekly decline in a month against the euro as traders increased bets that the Federal Reserve will cut interest rates again to avert a recession.
The U.S. currency also headed for a weekly loss versus the yen before a government report today that is forecast by economists to show consumer spending in the U.S. posted the smallest gain in more than a year last month. The yen snapped a five-day losing streak against the euro as a drop in stocks prompted traders to reduce holdings of higher-yielding assets funded with loans from Japan.
``The U.S. may have already entered a recession,'' said Michiyoshi Kato, a senior vice president of currency sales at Mizuho Corporate Bank Ltd. in Tokyo, a unit of Japan's second- largest publicly traded lender by assets. ``The Fed will keep lowering rates to defuse criticism that it always falls behind the curve. I am super dollar bearish.''
The dollar traded at $1.5773 per euro at 10:07 a.m. in Tokyo from $1.5779 in late New York yesterday and $1.5431 a week ago. The U.S. currency weakened to 99.44 yen from 99.65 yesterday and 99.58 a week ago. Japan's currency rose to 156.02 per euro from 157.21, following a 2.1 percent loss this week.
The dollar may fall to $1.60 a euro next month, Kato forecast. That would surpass the low of $1.5903 reached March 17, the weakest level since the European currency debuted in 1999. ......(more)
The complete piece is at:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aRFR9yC7ic1w&refer=home