13.06.201302:59:12UTC+00Dollar falls before economic data that may sway fed stimulus

The dollar descend versus the majority of its 16 most-traded counterparts before U.S. economic data that may provide more direction about when the Federal Reserve will begin to taper its financial stimulus.

Dollar Measure

The Dollar Index, which Intercontinentalexchange Inc. uses to track the greenback against the currencies of six major trading partners, lost 0.2 percent to 80.957, reaching the lowest level on a closing basis since Feb. 19. The measure traded below its 200-day moving average for the first time since Feb. 20.

Rand Gains

South Africa’s rand weakened after the country’s worst bond selloff in four years. The currency fell 0.4 percent to 10.1133 per dollar.

Central Bank

The BOJ refrained from adding stimulus or expanding its toolkit for tackling volatility in bonds after a policy meeting yesterday. Governor Haruhiko Kuroda said the central bank would discuss longer fund operations when needed to calm markets.

Japanese machine orders dropped 8.8 percent in April from March after rising for the previous two months, the Cabinet office said in Tokyo.

The yen has slumped 7.9 percent this year, the worst performer among 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The euro gained 4.3 percent and the dollar strengthened 3.1 percent.

Australia’s dollar snapped a three-day slide versus the U.S. currency as a technical indicator signaled recent selling was overdone. The relative-strength index versus the greenback fell to 30.7 yesterday, near the 30 level that some traders see as a sign the price has fallen too rapidly and is poised to change direction.

The Aussie gained 0.6 percent to 94.84 U.S. cents after falling to 93.26 yesterday, the weakest since September 2010. New Zealand’s dollar rose the most out of the greenback’s 16 most-traded counterparts, appreciating 1.5 percent to 79.90 U.S. cents.

Fed Chairman Ben S. Bernanke said May 22 the central bank could reduce its monthly purchases of $45 billion of Treasuries and $40 billion of mortgage bonds if the U.S. employment outlook shows a sustainable improvement. Policy makers have pledged to keep interest rates at almost zero as long as joblessness is above 6.5 percent and inflation is no more than 2.5 percent.

The central bank’s next rate decision will be June 19.