Consumer Comfort in U.S. Drops to One-Month Low on Fuel

Consumer confidence fell last week to the lowest level in a month as surging gasoline prices soured Americans’ outlook about their finances and the economy. 

The Bloomberg Consumer Comfort Index dropped to minus 44.5 in the period to March 6, from the prior week’s minus 39.7, which was close to the highest in almost three years. Sentiment suffered the most among respondents who lacked a full-time job or any employment and those earning less than $50,000 a year. 

Gasoline costs have increased every day except one since mid-February, dealing a financial blow to households just as the labor market shows signs of improvement. The added burden of higher prices at the pump may restrain the gains in consumer spending that are bolstering the expansion. 

“Rising gasoline prices extracted a toll,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “Those at the lower end of the income ladder and those in the middle are being squeezed by rising costs of fuel and food, which does not bode well for discretionary spending.” 

A Labor Department report today showed claims for unemployment benefits increased last week from an almost three- year low. Applications rose by 26,000 to 397,000 in the week ended March 5. Economists projected claims would climb to 376,000, according to the median forecast in a Bloomberg survey. 

The Bloomberg comfort gauge reflected worsening results for all three sub components. 

The measure of personal finances fell to minus 3.7 last week, from an almost two-year high of 2.4, the report showed. Forty-eight percent of those polled held positive views on their financial situation, down from 51 percent the previous week.

Views on Economy

A gauge of Americans’ views of the economy fell to minus 76.8 last week from minus 70.6. The share of households with a positive view of the economy dropped to 12 percent from 15 percent the prior week. 

An index of the buying climate fell to minus 53, the lowest in a year, from minus 50.9. Those people saying it was a good time to buy needed items dropped to 24 percent from 25 percent the previous week. 

The average price of regular gasoline at the pump climbed 14 cents to $3.51 a gallon in the week ended March 6, according to AAA, the nation’s biggest motoring organization. That followed a gain of 20 cents in the prior period, which was the biggest one-week jump since the aftermath of Hurricane Katrina in 2005.

‘Forking Over $50’

“The repeated impact of forking over $50 or more per fill- up is not to be underestimated,” Gary Langer, president of Langer Research Associates LLC in New York, which compiles the index for Bloomberg, said in a statement. “Gas is not the only culprit,” he said, citing the average duration of unemployment, which rose in February to the highest level in records going back to 1948. 

Gasoline prices and the comfort index have shown a strong inverse correlation since 2004, according to calculations by Bloomberg’s Brusuelas. Additionally, changes in the four-week average of claims for jobless benefits have been in sync with the comfort gauge about 72 percent of the time. 

Macy’s Inc. (M), the second-biggest U.S. department-store chain, is among companies watching the rising cost of fuel, which “will certainly affect some more than others,” said Chief Executive Officer Terry Lundgren. The shopper with less discretionary income “makes a decision of filling up (their) gas tank or buying a handbag,” he said. 

Spending Less 

“The customer who has the average household income of $75,000, $100,000, is back spending,” Lundgren said in the Cincinnati-based company’s March 9 presentation to investors. “And the customer who is well under that is spending even less than they spent before.” 

Today’s report showed the index for Americans earning $40,000 to $49,900 a year fell to minus 51.5 last week, from minus 42.6 the week before. 

The comfort measure for part-time workers declined to minus 52.5 from minus 42.9, while for those who are unemployed it dropped to minus 56.6 from minus 54.3. 

Federal Reserve Chairman Ben S. Bernanke, in his semiannual testimony before Congress last week, said sustained rises in the prices of oil or other commodities “would represent a threat both to economic growth and to overall price stability.” 

The Bloomberg Consumer Comfort Index is based on responses to telephone interviews with a random sample of 1,000 consumers aged 18 and over. Each week, 250 respondents are asked for their views on the economy, personal finances and buying climate; the percentage of negative responses is subtracted from the share of positive views and divided by three. 

The comfort index can range from 100, indicating every participant in the survey had a positive response to all three components, to minus 100, signaling all views were negative. The margin of error for the headline reading is 3 percentage points. 

The responses are broken down by participants’ sex, age, income level, race, region of residence, political affiliation, marital and employment status. 

Field work for the index is done by SSRS/Social Science Research Solutions in Media, Pennsylvania. 

Source: Bloomberg By Shobhana Chandra 

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U.S. Consumer Confidence Nosedives On Oil Woes

The IBD/TIPP Economic Optimism Index precipitously declined 7.9 points, or 15.5%, in March posting 43.0 vs. 50.9 in February. The index is 3.7 points below its 12-month average of 46.7 and 1.4 points below its reading of 44.4 in December 2007 when the economy entered into the recession, and 7.6 points below its all-time average of 50.6. The 7.9 points drop is the second biggest month-to-month decline in the index's ten-year history --1.8 points shy of its earlier record of 9.7 points in September 2005 in the aftermath of Hurricane Katrina. The previous low for the index was 41.1 in October 2008 during the sub-prime turmoil 29 months ago.

Note: Index readings above 50 indicate optimism; below 50 indicate pessimism.

The IBD/TIPP Economic Optimism Index has a good track record of foreshadowing the confidence indicators put out later each month by the University of Michigan and The Conference Board. IBD/TIPP conducted the national poll of 917 adults from February 28 to March 6. The margin of error is +/-3.3 percentage points.

The IBD/TIPP Economic Optimism Index has three key components, all of which declined in March.

• The Six-Month Economic Outlook, a measure of how consumers feel about the economy's prospects in the next six months, dropped 13.3 points, or 25.1%, to 39.7. When compared to December 2007, the index shows a gain of 7.6 points.

• The Personal Financial Outlook, a measure of how Americans feel about their own finances in the next six months, declined 5.9 points, or 10.5%, to reach 50.2.

• Confidence in Federal Economic Policies, a proprietary IBD/TIPP measure of views on how government economic policies are working, fell 4.5 points, or 10.3%, to reach 39.0.

"Consumer confidence nosedived in March virtually erasing out its January gains. Uncertainties with the middle-east situation are the primary reason. Two-thirds say they are affected by the escalation of gasoline prices. The job situation is also a contributing factor. Twenty-three percent of households mention that at least one member is looking for full-time employment. The realities of the situation are grimmer than the picture portrayed by last week's job report," said Raghavan Mayur, president of TIPP, a unit of TechnoMetrica Market Intelligence, IBD's polling partner.

"Obviously, the 33-cent a gallon surge in gasoline prices in just two weeks is hitting average Americans hard, cutting sharply into their disposable income," said Terry Jones, associate editor of Investor's Business Daily. "Until energy prices reverse or stabilize, consumer confidence is likely to remain weak – and perhaps decline even further."

The Breakdown

This month, only three of the 21 demographic groups that IBD/TIPP tracks were above 50 on the Economic Optimism Index. Twenty groups declined on the index.

On the Economic Outlook component, only three of the groups IBD/TIPP tracks scored in optimistic territory. Twenty groups declined.

On the Personal Financial component, eleven of the groups IBD/TIPP tracks scored in optimistic territory. Two groups advanced on the component and nineteen declined.

On the Federal Policies component, only two of the 21 demographic groups tracked were above 50. All the twenty-one groups declined in March.

* * *

ABOUT THE IBD/TIPP POLL

The IBD/TIPP Economic Optimism Index is the earliest take on consumer confidence each month and predicts with 80% reliability monthly changes in sentiment in well-known polls by The Conference Board and the University of Michigan. The IBD/TIPP Economic Optimism Index is based on a survey of 900-plus adults chosen at random nationwide. The poll is generally conducted in the first week of the month.

For more information, go to www.tipponline.com

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Source: by IBD/TIPP Press-release 

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Australia's Retailers Face `Modest Recovery' as Higher Rates Offset Wages

Australian retail sales are likely to increase at a slower pace than past recoveries as higher interest rates erode consumer spending power, Access Economics said in a report today. 

Retail sales will advance 1.6 percent in the 12 months ending June 30, the Canberra-based research company said. Sales will gain 2.9 percent in 2011-12 and 3 percent in 2012-13, based on job growth, higher wages and a gradual easing of consumer caution, Access said. 

“This still looks set to be a more modest recovery in retail spending than is typically the case when employment is running hot,” the company, founded by two former Treasury economists, said in the report. Retail sales grew an average of 3.1 percent in the past five years, it said. 

Australian retail sales declined last quarter and Myer Holdings Ltd., the nation’s largest department store chain, last month cut its profit forecast for the 2011 financial year. Reserve Bank of Australia Governor Glenn Stevens left the overnight cash rate target at 4.75 percent last week, after seven increases from October 2009 to November 2010. 

Australian employers probably added 20,000 workers last month and the jobless rate stayed at 5 percent, according to the median estimate in a Bloomberg News survey of 19 economists ahead of a March 10 employment report. 

Australia recorded its biggest annual gain in employment on record in 2010 as resource and energy companies boosted hiring to meet demand from China in what the RBA has called a once-in- a-century mining boom. Retail sales, adjusted to remove inflation, fell 0.3 percent in the three months through Dec. 31 from the previous quarter, a report showed last month. 

“One can’t ignore the recent surge in Australia’s income,” Access said. “We suspect that over time, very low rates of unemployment should help to loosen the purse strings of consumers.” 

Source: Bloomberg By Michael Heath  

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Summary Of 5 Major Currency Indicators

On 28 until 4 of march, there were so many fundamental factors which give big influence of currency mover especially for 5 major currency. A long these weeks, some of indicators like EUR,JPY,AUD,CHF toward USD will be summarized below (to look more detail please refer to Forexfactory:

• EUR/USD, indicators such as Core Cosumer Price Index dropped from forecast (1.2%) to actual (1.1%), Unemployment rate was good result from (10%) to (9%), Produces Price Index raised from (1.1%) to (1.5%), German Retail Sales m/m was also up from (0.3%) to (1.4%), Minimum Bid rate was remain unchanged still (1%).

• USD/JPY, indicators such as Manufacturing Purchasing managers' index was good from (51.4%) to (52.9%), Retail sales y/y grow from (-2.1%) to (0,1%), Average Cash Earnings y/y dropped from forecast (0.4%) to actual (0.2%), Monetary Base y/y was also bad result from forecast (6,4%) to actual (5,6%), Capital Spending q/y plunged from 5,9% (forecast) to 3,8% (actual).

• USD/CHF, indicators such as GDP q/q was good result from (0,8%) to (0,9%), SVME PMI measures of Level of a diffusion index based on surveyed purchasing managers showed a good from 60,8 to 61,4, Retail Sales y/y was bad from forecast (1,7%) to actual (-2,6%).

• AUD/USD, indicators such as Company Operating Profit q/q was beyond prediction from (0,8%) to (-2,8%), Retail Sales m/m showed good result from 0,2% to 0,4%, Current Account dropped from forecast (-6,9B) to (-7,3B), Cash Rate was stable in 4,75%, GDP q/q grow from (0,1%) to (0,7%), Building Approvals m/m dropped from (10%) to (-15,9%), Trade Balance was good from forecast (1,53B) to (1,88B).

• GBP/USD, indicators such as NationWide HPI m/m was good result from (-0,2%) to (0,3%), Manufacturing PMI was remain unchanged in (61,5),Final Mortgage Approvals and M4 Money Supply m/m raised gradually compare with previous result, Construction PMI was going up from (53,0) to (56,5), Service PMI was bad from previous (54,5) to (52,6), Halifax HPI m/m dropped from previous (-0,6%) to actual (-0,9%).

In Summary, EUR and GBP were raised significantly along these weeks. Meanwhile, JPY, CHF, AUD were strangling up and down depend on what kind of indicators involved.   

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Retail Sales in U.S. Probably Climbed in February as Auto Purchases Rose

U.S. retail sales probably climbed in February by the most in four months, spurred by job growth and more seasonable temperatures, economists said before a report this week. 

The projected 1 percent gain would follow a 0.3 percent January increase, according to the median forecast of 63 economists surveyed by Bloomberg News ahead of Commerce Department figures March 11. Other reports may show the trade deficit widened in January and consumer confidence fell this month as gasoline prices rose. 

J.C. Penney and Macy’s Inc. (M) were among retailers that topped analysts’ sales estimates, a sign household spending regained momentum after a weather-restrained January. While higher fuel costs may be concerning Americans, bigger paychecks thanks to the tax compromise reached by President Barack Obama and congressional Republicans are probably preventing demand from slipping for now. 

“Chain-store sales did well, automobile sales improved sharply and employment bounced back” last month, said Brian Bethune, chief U.S. financial economist at IHS Global Insight in Lexington, Massachusetts. “Households may have realized that they have some extra cash in their pockets due to this year’s cut in the payroll tax.” 

Retail sales excluding automobiles and service stations rose 0.4 percent in February, the most in three months and twice the January gain, according to the Bloomberg survey.

First-Quarter Slowdown

While February sales improved from a month earlier, the retail figures aren’t adjusted for changes in prices, in contrast to the consumer spending numbers in the Commerce Department’s report on gross domestic product. Combined with January, the February retail sales figures indicate first- quarter household purchases will cool from a 4.1 percent pace in the previous three months that were the fastest since 2006. 

The retail sales data may reflect higher gasoline prices. Regular fuel in February reached an average $3.18 a gallon, or 8 cents more than January, according to AAA, the nation’s biggest motoring organization. 

Sales at stores open at least a year at the more than 30 chains tracked by Retail Metrics climbed 4.3 percent in February from a year earlier, an 18th straight gain, surpassing analysts’ estimates for a 3.8 percent increase. Purchases at stores open at least a year climbed 6.4 percent at Plano, Texas-based J.C. Penney, and 5.8 percent at New York-based Macy’s, company data showed last week.

Retailer Shares

Investors have driven up retailer shares as spending increases. The Standard & Poor’s Supercomposite Retailing Index, which includes Macy’s and Gap, has gained 21 percent in the 12 months through March 4, compared with an 18 percent advance for the broader S&P 500. 

Americans also filed into dealer showrooms in February to take advantage of incentives. Auto sales rose to a 13.38 million annual rate, the highest level since August 2009 when the government’s cash-for-clunkers program boosted purchases, according to industry data. 

“Growing consumer confidence combined with pent-up demand will continue to have a positive influence on industry sales going forward,” Donald R. Johnson, vice president for North American sales at Detroit-based General Motors Co., said in a March 1 teleconference. “We continue to believe that we’re going to see this slow-but-steady growth throughout the year.” 

An improving labor market is boosting spending. Employers added 192,000 jobs in February, the most since last May, and the unemployment rate fell to 8.9 percent, the lowest since April 2009, Labor Department figures showed last week. 

Beige Book 

The Federal Reserve last week said the labor market improved throughout the country early this year, driven by increasing retail sales and “solid growth” in manufacturing. 

“Retail spending strengthened compared with a year ago across all Districts except Richmond and Atlanta,” the Fed’s Beige Book of regional economies said. 

Another report from the Commerce Department on March 10 may show the trade deficit widened to $41.5 billion in January from $40.6 billion the prior month, according to the median forecast of economists surveyed by Bloomberg. The gain may reflect faster growth in imports, as wholesalers stocked shelves with goods made overseas to meet rising demand. 

Wholesale inventories probably climbed 0.9 percent in January following a 1 percent increase, economists forecast the Commerce Department will report on March 9. 

The Reuters/University of Michigan preliminary index of consumer confidence for March may show sentiment eased to 76.5 from 77.5 at the end of February, according to economists’ forecasts. That report is slated for March 11.

Bloomberg Survey

================================================================
                        Release    Period    Prior     Median
Indicator                 Date               Value    Forecast
================================================================
Cons. Credit $ Blns       3/7       Jan.      6.1       3.4
NFIB Optimism Index       3/8       Feb.      94.1      95.0
IBD/TIPP Conf. Index      3/8       Feb.      50.9      51.7
MBA Mortgage Applicatio   3/9      5-Mar     -6.5%      n/a
Whlsale Inv. MOM%         3/9       Jan.      1.0%      0.9%
Trade Balance $ Blns      3/10      Jan.     -40.6     -41.5
Initial Claims ,000’s     3/10     5-Mar      368       378
Cont. Claims ,000’s       3/10     26-Feb     3774      3750
BCCI                      3/10     6-Mar      -39       n/a
Federal Budget $ Blns     3/10      Feb.     -220.9    -227.5
Retail Sales MOM%         3/11      Feb.      0.3%      1.0%
Retail ex-autos MOM%      3/11      Feb.      0.3%      0.7%
Retail exauto/gas MOM%    3/11      Feb.      0.2%      0.4%
U of Mich Conf. Index     3/11    March P     77.5      76.5
Business Inv. MOM%        3/11      Jan.      0.8%      0.8%
================================================================

Source: Bloomberg By Bob Willis

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U.S. Commodities: Gold Falls From Record as Libya Concerns Ebb

Gold futures fell the most in six weeks after Venezuela offered to mediate a resolution to the crisis in Libya. Silver had the biggest drop since late January. 

The Arab League said it is weighing an offer by Venezuelan President Hugo Chavez to mediate the civil conflict in Libya. Yesterday, gold rose to a record of $1,441 an ounce as turmoil in the Middle East, the world’s biggest oil-producing region, boosted demand for an investment haven. 

“Peace, if it happens, may be bearish for gold and silver,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. “It is time again to head to the sidelines in gold and precious metals.” 

In other markets, cotton rose for the fifth straight session after a report showed increased export demand from the U.S., the world’s largest shipper. Crude oil fell from a 29- month high. The UBS Bloomberg Constant Maturity Commodity Index advanced 0.3 percent to 1,788.22. Earlier, the gauge reached 1,791.25, extending a rally to a record. 

Gold futures for April delivery fell $21.30, or 1.5 percent, to settle at $1,416.40 on the Comex in New York, the biggest slide since Jan. 20. The metal has gained 24 percent in the past year. 

Silver futures for May delivery fell 50.8 cents, or 1.5 percent, to $34.327 an ounce, the biggest drop since Jan. 25. Yesterday, the metal reached $34.975, the highest since March 7, 1980. That year, the price climbed to a record of $50.35. The commodity has almost doubled in the past 12 months.

Cotton

Cotton for May delivery advanced 5.1 cents, or 2.5 percent, to settle at $2.057 a pound on ICE Futures U.S. in New York. Earlier, the price surged by the exchange limit of 7 cents. The most-active contract has jumped 16 percent in five sessions after falling 5.5 percent last week. 

U.S. sales surged 56 percent to 403,341 bales in the week ended Feb. 24 from a week earlier as shipments increased to China, Turkey and Bangladesh, the U.S. Department of Agriculture said today. Prices have more than doubled in the past 12 months as global supplies trailed demand. 

“China is busy trying to book as much cotton as it can,” said Mike Stevens, an independent trader in Mandeville, Louisiana. “These numbers are terrific and show how much demand was waiting for prices to dip.”

Crude Oil

Oil futures for April delivery slid 32 cents, or 0.3 percent, to $101.91 a barrel on the New York Mercantile Exchange. 

The Associated Press reported that Libyan army deserters secured oil facilities in the rebel-held port of Brega on the Gulf of Sidra. Forces loyal to Muammar Qaddafi briefly seized, then lost control of, Brega yesterday.

“There are people attempting to come up with some kind of compromise that would allow some kind of peace settlement, and that’s definitely a bearish sign,” said Michael Lynch, the president of Strategic Energy & Economic Research in Winchester, Massachusetts. The government’s failure to hold Brega “removed any thought that there would be any damage to the oil exports,” he said.

Commodities settled as follows:

April gold down $21.30 to $1,416.40 an ounce May silver down 50.8 cents to $34.327 an ounce April platinum down $26.30 to $1,833 an ounce June palladium down $7.85 to $814.80 an ounce 

Livestock: April live cattle up 2 cents to $1.142 a pound August feeder cattle up 0.875 cent to $1.344 a pound April lean hogs up 0.55 cent to 88.8 cents a pound 

Grains: May soybeans up 17.75 cents to $14.12 a bushel May corn up 15.25 cents to $7.3675 a bushel May wheat up 12.25 cents to $8.235 a bushel May rice up 0.085 cent to $14.10 per 100 pounds May oats up 4 cents to $3.94 a bushel 

Food and Fiber: May coffee up 5.2 cents to $2.7475 a pound May cocoa up $69 to $3,733 a metric ton May cotton up 5.1 cents to $2.057 a pound May sugar up 0.21 cent to 30.59 cents a pound May orange juice down 1.75 cents to $1.7455 a pound 

Energy: April crude oil down 32 cents to $101.91 a barrel April natural gas down 4 cents to $3.778 per million British thermal units April heating oil down 0.84 cent to $3.0493 a gallon April gasoline down 0.33 cent to $3.0262 a gallon 

Others: May copper down 0.8 cent to $4.49 a pound May lumber up $10 to $315.20 per 1,000 board feet 

Source: Bloomberg By Pham-Duy Nguyen 

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Dollar Falls Versus Most Peers Before Bernanke Speaks; Yen Drops on Growth

The dollar fell against most of its major counterparts on speculation Federal Reserve Chairman Ben S. Bernanke will tell a Senate panel economic stimulus will continue as bets rose that interest rates will go up elsewhere. 

The yen and Swiss franc slumped as investors sought higher- yielding assets. The euro gained versus the dollar as the European Commission raised its growth forecast and said inflation may stay above the European Central Bank’s limit for most of 2011. 

“It has become the market view that the ECB and Bank of England, and maybe the Bank of Canada, will raise rates before the Federal Reserve,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp., the world’s largest custodial bank, with more than $20 trillion in assets under administration. “The data and events this week will be focused on fine-tuning the path of interest rates.”

The dollar weakened 0.1 percent to $1.3825 per euro at 9:19 a.m. in New York, from $1.3806 yesterday. The shared currency rose 0.6 percent to 113.60 versus the yen, from 112.91. Japan’s currency lost 0.5 percent to 82.18 per dollar, and the franc fell 0.4 percent to 1.2879 per euro. 

The yen fell against all of its most traded counterparts. 

Futures on the Standard & Poor’s 500 Index due this month rose 0.3 percent before a report that economists said will show manufacturing expanded at the fastest in almost seven years.

Bernanke Testimony

Bernanke is scheduled to deliver a semiannual report on monetary policy at 10 a.m. New York time to the Senate Banking Committee and is due to testify to the House Financial Services Committee tomorrow. 

Gross domestic product in the euro region may increase 1.6 percent this year, above an earlier forecast of 1.5 percent growth, the Brussels-based commission said in a report published today. Inflation will average 2.2 percent, the agency forecast, up from a November estimate of 1.8 percent. Inflation in the 17- nation bloc quickened to 2.4 percent last month from 2.3 percent in January, the European Union’s statistics office in Luxembourg said today in a preliminary estimate. 

“For the past couple of days we’ve seen some broader-based dollar weakness, especially against the G-10 currencies,” said Amelia Bourdeau, a currency strategist in Stamford, Connecticut, at UBS AG. “People expect the Fed to hike rates later compared to others in the G-10.” 

The ECB has held its benchmark interest rate at 1 percent since May 2009.

Canadian Dollar

The Canadian dollar traded near the strongest level in more than three years as the Bank of Canada kept its benchmark interest rate at 1 percent and policy makers said they will carefully consider future increases in a recovery that is “slightly faster” than they forecast. 

The currency traded at 97.28 cents per U.S. dollar, down 0.1 percent, after touching 96.84 cents, the strongest since November 2007. 

The Swedish krona advanced 0.4 percent to 6.3014 against the dollar, after appreciating 1.6 percent yesterday. Versus the euro, it strengthened 0.3 percent to 8.7069. It has gained this year versus all of its 16 most-traded counterparts. 

Sweden’s gross domestic product expanded 1.2 percent in the fourth quarter from 2.1 percent in the prior three months, Stockholm-based Statistics Sweden said today on its website. That compares with a 1 percent median estimate in a Bloomberg survey of 17 economists. Annual growth was at 7.3 percent, the fastest pace in at least 15 years. 

The Institute for Supply Management’s U.S. manufacturing index rose to 61.0 in February, the highest since May 2004, economists in a Bloomberg survey forecast before today’s report.

Australian Dollar

Australia’s dollar gained for a third day against the Japanese currency, appreciating 0.4 percent to 83.65 yen as a government report showed retail sales gained 0.4 percent in January from a month earlier. That beat the 0.3 percent median forecast in a Bloomberg survey. 

Japan’s benchmark interest rate of as low as zero compares with Australia’s 4.75 percent rate attracting investors to the South Pacific nation’s higher-yielding assets. 

The euro completed a third monthly advance versus the dollar in February before the ECB holds its next policy meeting on March 3. ECB governing council member Mario Draghi said on Feb. 26 that inflation pressures are forcing policy makers to focus more on the timing of interest rate increases. 

Europe’s shared currency has risen 1.3 percent this year, while the dollar has lost 2.2 percent, according to Bloomberg Correlation-Weighted Currency Indexes, which track the currencies of 10 developed nations. The dollar dropped yesterday to the lowest since August 2008, according to the indexes. 

Source: Bloomberg By Allison Bennett and Lukanyo Mnyanda 

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