Dollar Slides on Europe Bets, Drop in Jobless Claims; Peso Gains
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The dollar dropped versus 13 of its 16 most-traded counterparts as speculation Europe’s debt crisis will ease and a report showing that U.S. unemployment-benefit applications fell spurred appetite for higher-yielding assets.
Mexico’s peso climbed from the lowest level against the greenback in almost a month after the jobless-claims report spurred bets the economy of its biggest trade partner is improving. The euro snapped a three-day losing streak versus the dollar as speculation grew that Spain will seek a bailout and demand increased at an Italian bond sale. Standard & Poor’s downgraded Spain yesterday to one level above junk.