By Matthew Brown and Yasuhiko Seki
July 30 (Bloomberg) -- The dollar declined for the first time in three days after a government report showed Japanese manufacturers boosted production for a fourth month, sapping demand for safe-haven currencies.
The U.S. currency fell the most against the pound of its 16 major counterparts after a report showed U.K. house prices rose for a third month and a rally in stocks spurred investor appetite for riskier assets. New Zealand’s dollar declined the most in three weeks after the nation’s central bank kept its benchmark interest rate unchanged for a second month and Reserve Bank Governor Alan Bollard said rates may fall further.
“The dollar is under pressure as risk comes back on today,” said Gavin Friend, a markets strategist at National Australia Bank in London. “We’re not out of the woods yet when it comes to risk aversion. Tomorrow’s U.S. gross domestic product numbers will be key for giving the market some direction.”
The Dollar Index, which the ICE uses to track the dollar against currencies including the yen, pound and Swedish krona, fell 0.4 percent to 79.297 as of 9:23 a.m. in London. The pound strengthened 0.7 percent to $1.6494. The dollar was little changed at $1.4054 per euro and 95.02 yen.
The New Zealand dollar fell as much as 1.5 percent, the biggest decline since July 16, before trading down 0.6 percent at 65.36 U.S. cents.
To contact the reporters on this story: Matthew Brown in London at mbrown42@bloomberg.net; Yasuhiko Seki in Tokyo at yseki5@bloomberg.net.
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