"The dollar fell against the euro, paring a weekly gain, on speculation Federal Reserve policy makers on Dec. 14 will discuss a plan to extend Treasury purchases to support growth.
The dollar dropped as benchmark Treasury yields declined for a second day, damping the allure of U.S. assets. Fed officials announced last month a $600 billion second round of debt buying through June. The Australian dollar is set for a weekly drop on concern Chinese inflation data tomorrow will back the case for the Asian nation to tighten monetary policy.
“I don’t think the Fed wants yields to keep rising right now, and they are likely to try to tame yield gains next week,” said Kengo Suzuki, manager of the foreign bond department in Tokyo at Mizuho Securities Co. “The dollar is likely to switch back to a negative trend.”" Read more. "Dollar Weakens Versus Euro as Treasury Yields Decline Before Fed Meeting"
Yoshiaki Nohara and Monami Yui
Bloomberg, December 10, 2010Image by dream designs / FreeDigitalPhotos.net.