The dollar rose against the euro for a third day in the longest advance since August as a report showed U.S. consumer confidence fell this month, reducing demand for higher-yielding assets.
Sweden’s krona and the South African rand were the biggest losers versus the dollar among the 16 most-traded currencies tracked by Bloomberg as U.S. stocks erased gains on the sentiment data.
“Consumer confidence is weak,” said Vassili Serebriakov, a currency strategist at Wells Fargo & Co. in New York. “There’s to an extent a disconnect between what financial markets are telling us and what the economic data is telling us.”
The dollar appreciated 0.5 percent to $1.4803 per euro at 10:24 a.m. in New York, from $1.4876 yesterday, when it strengthened 0.9 percent, the most since Aug. 7. The euro dropped 0.6 percent to 136.26 yen, from 137.10. The dollar fell 0.1 percent to 92.07 yen, from 92.19, after earlier reaching 92.32, the highest level since Sept. 21.
The New York-based Conference Board’s consumer confidence index dropped to 47.7 in October. The median forecast of 74 economists in a Bloomberg survey was for an advance to 53.5.
The yen strengthened earlier versus the euro as India’s central bank increased the statutory liquidity ratio for banks to 25 percent from 24 percent and raised its inflation forecast, taking a step toward withdrawing its record monetary stimulus.
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