The euro fell against most of its major currencies on speculation its
advance to a 15-month high against the dollar was excessive given lingering
concern Europe’s debt crisis may worsen. Europe’s common currency
retreated from its highest level since May 2010 against the yen as technical
charts signaled the past month’s 7.6% rally may reverse. The dollar ended a
two-day drop against Japan’s currency after U.S. lawmakers pulled the government
back from the brink of a shutdown by agreeing to cut about $38 billion from
federal spending. The euro fell to $1.4461 from $1.4483 last week, when it rose
to $1.4489, the most since January 2010. The currency declined to 122.49 yen
from 122.76 last week, after earlier reaching 123.33 yen, the strongest since
May 5, 2010. The dollar traded at 84.70 yen from 84.76 yen last week.
Gold climbed to a record and silver topped $41 an ounce, gaining for
a ninth straight day in the best run since March 2008, as investors sought
precious metals as hedges against accelerating inflation.
Immediate-delivery bullion gained as much as 0.2% to $1,478.18 an ounce and
traded at $1,473.20 this morning. Gold strengthened 3.8% this year after
rallying 30% in 2010 on the prospect of currency debasement and rising
inflation. The fighting in the Middle East, a nuclear crisis in Japan and
European sovereign-debt problems have also bolstered demand for precious metals.
Cash silver rose as much as 1.5% to $41.5238 an ounce, the highest level since
1980, before trading at $41.465 an ounce.
The Standard & Poor’s GSCI Spot Index of 24 raw-materials futures
reached 760.81 points on April 8, the highest level since Aug. 4, 2008.
Crude touched a 30-month high of $113.46 per barrel today amid fighting in Libya
and unrest in the Middle East. The European Central Bank last week raised the
main interest rate 25 basis points to 1.25%.