Dollar Falls Against the Yen
MARKETSCOPE : The dollar shed value early Monday, as investors continued making bets on the direction of interest rates in the U.S. and Europe.
The dollar index was down 27 cents to 91.58. The dollar was down at 118.86 yen.
The euro rose to $1.1813, after markets showed little reaction to a report that the eurozone had a September trade surplus of 1.2 billion euros. The sterling gained to $1.7189 after two reports showed an improved housing market.
The U.S. Federal Open Market Committe (FOMC) has hiked interest rates 12 times since 2004, in an effort to control inflation by making it more expensive to borrow in the U.S. The FOMC meets again on Dec. 13.
The European Central Bank (ECB) meets Dec. 1. The monetary authority's President Trichet said on Friday that the ECB will "withdraw some of the accomodation which is in the present monetary stance." His comments add to the recent rhetoric of ECB officials, according to a report on Monday by JP Morgan.