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Dollar Rises Against Major Peers Before Confidence Report
 By Monami Yui and Kristine Aquino - Apr 22, 2012 4:50 PM GMT-0700


The dollar rose against most of its major counterparts on speculation reports tomorrow will signal the U.S. economy is gaining momentum, damping speculation the Federal Reserve will expand monetary easing.

The U.S. currency was 0.2 percent from its highest in more than a week against the yen before the data, which are forecast to show consumer confidence held near the strongest level in a year and new home sales rose. Losses in the euro were limited after nations committed more than $430 billion in fresh money to the International Monetary Fund to help it protect the world economy against Europe’s debt crisis.

“The possibility of more Fed easing will still be there, but I think it will be a reduced possibility,” said Joseph Capurso, a strategist in Sydney at Commonwealth Bank of Australia (CBA), the nation’s largest bank. “That will at the margin support the dollar.”

The dollar gained 0.1 percent to 81.62 yen as of 8:33 a.m. in Tokyo, from the New York close on April 20, when it touched 81.78, the strongest since April 10. It fetched $1.3198 per euro from $1.3219. The euro was little changed at 107.72 yen.

The Conference Board’s U.S. confidence index was probably 69.8 in April, compared with 70.2 in March, according to the median forecast in a Bloomberg News survey before the New York- based private research group announces the data. The Commerce Department may say tomorrow that purchases of new homes rose 1.6 percent in March, a separate poll showed.

The Fed will release a statement on monetary policy along with its projections for growth, unemployment and inflation on April 25. All of 76 economists surveyed by Bloomberg predict the central bank will keep its benchmark rate in a range of zero to 0.25 percent at the meeting.

The IMF’s spring meetings ended yesterday in Washington with the doubling of its war chest and a number of sores exposed among its 188 members. Managing Director Christine Lagarde fell short of her original $600 billion goal as the U.S. refused to chip in, while Canada proposed making it harder for Europe to tap aid. Large emerging-market nations demanded more power at the IMF before writing checks.

To contact the reporters on this story: Monami Yui in Tokyo at myui1@bloomberg.net; Kristine Aquino in Singapore at kaquino1@bloomberg.net.

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