The dollar jumped to an almost seven-year high versus the yen and gold fell as slowing Chinese manufacturing growth and the Bank of Japan’s unexpected stimulus highlighted the diverging growth outlook for the U.S. and Asian economies.
The dollar advanced 0.3 percent by 12:51 p.m. in Hong Kong, heading for a level last seen in June 2010 as the greenback bought 112.73 yen, the most since December 2007. South Korea’s won slid 0.4 percent as the yen’s slump heightened intervention speculation. Standard & Poor’s 500 Index futures slipped 0.1 percent as Asia’s benchmark share index retreated 0.5 percent.
Most major currencies were weaker against the dollar today after U.S. consumer-confidence and manufacturing reports Oct. 31 underscored the strength of the world’s biggest economy relative to the outlooks in Europe and Asia. An official gauge of Chinese factory output unexpectedly dropped in October, data at the weekend showed, while a private gauge today was unchanged from September.
Gold extended declines today after sliding 2.2 percent Oct. 31 and touching $1,161.35, its lowest intraday price since July 2010. The precious metal dropped 4.7 percent last week to cap a second straight monthly loss. Silver slipped to $15.9646 an ounce today, after reaching $15.7908 Oct. 31, its lowest level since February 2010. Platinum fell 0.4 percent while palladium was little changed.
The yen tumbled 2.9 percent Oct. 31 after the unexpected BOJ announcement. The currency dropped as much as 0.6 percent today to 112.99 per dollar after losing 3.9 percent last week, its worst five-day slump since December 2009.