Dollar gains as stocks, Treasuries fluctuate before Fed decision

Aussie Slides

The Aussie slid 1.6% to 90.63 U.S. cents after touching 90.44 cents, the weakest level since July 15.

The Australian dollar has tumbled 10% this year, the most among 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes, while the yen dropped 8.5%. The euro strengthened 5.4%. The pound slipped 0.6% to $1.5245 and lost 0.6% versus the euro. The Bank of England and European Central Bank announce rate decisions on Aug. 1.

Swedish Economy

Sweden’s krona weakened more than 1% against the euro today after a report showed the nation’s economy unexpectedly shrank in the second quarter. Gross domestic product contracted 0.1% in the three months through June from the previous quarter, when it grew 0.6%, preliminary data from Stockholm-based Statistics Sweden showed. Economists in a Bloomberg survey had predicted a 0.1% expansion.

The rate on 10-year Italian bonds fell five basis points to 4.40% as the nation met its maximum target of 6.75 billion euros ($8.96 billion) at the sale of securities maturing in June 2018 and March 2024 today.

Copper fell 2.1% in London while palladium sank 1.8% to lead declines in metals. Gold for immediate delivery was little changed. Oil fell 1.4% to $103.08 a barrel, a three-week low, before tomorrow’s U.S. GDP report. Corn rallied from the lowest price in almost 34 months, adding 0.9%.

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