NEW YORK -(Dow Jones)- The euro extended its rally Thursday afternoon against
the dollar past $1.3400.
The dollar is suffering from a renewed focus on U.S. fundamentals and interest
rates ahead of the Federal Open Market Committee meeting next week as volatility
eases.
Measures of market volatility have been declining in recent sessions,
reversing the flows that have boosted the buck, a funding currency, as investors
cashed out of previous positions.
The euro recently broke the $1.34 mark after rising past $1.34 just an hour
earlier, to its highest level in about seven weeks, $1.3407.
"The break of $1.3290 opens the door to at least $1.3515," according to Alan
Ruskin, head of international strategy at RBS Greenwich Capital.
He said there are concerns that the Fed is "going to do something more than
simply cut rates next week."
Analysts add that the euro has smashed through key technical barriers. With
each advance, traders are attempting to push the common currency to the next
important level.
Against the yen, the euro also reached a two-week high of Y122.74. Thursday
afternoon in New York, the euro was at $1.3373 from $1.3022 late Wednesday,
while the dollar was at Y91.58 from Y92.67, according to EBS. The euro was at
Y122.50 from Y120.62, while the pound was at $1.5065 from $1.4799. The dollar
was at CHF1.1811 from CHF1.1987 late Wednesday.