Terryfx

The dollar fell to almost the weakest level in one month against the euro on prospects the Federal Reserve will announce further stimulus when it concludes its two-day meeting today. Demand for the 17-nation currency was bolstered as leaders at a Group of 20 meeting pledged to take “all necessary policy measures” to defend the currency union. A dozen of the 21 primary dealers who trade with the Fed expect some form of monetary easing. New Zealand’s dollar weakened after data showed the nation’s current-account deficit widened more than economists had estimated in the first quarter. “There’s a degree of hope the Fed will announce stimulus measures tonight and that’s been undermining the dollar,” said Lee Hardman, a foreign-exchange strategist at Bank of Tokyo- Mitsubishi UFJ Ltd. in London. “If the Fed were to implement additional easing, it’s more likely to be modest steps.” The dollar dropped 0.2 percent to $1.2709 per euro at 8:05 a.m. New York time, after reaching $1.2748 two days ago, the least since May 22. The shared currency added 0.2 percent to 100.36 yen. The Japanese currency was little changed at 78.96 per dollar. The Fed will review new forecasts as it contends with financial stress in Europe and a U.S. unemployment rate that has remained above 8 percent for 40 months. JPMorgan Chase & Co. and Jefferies Group Inc. predict policy makers will extend the central bank’s so-called Operation Twist. The $400 billion program, which was announced in September and is due to end this month, involved selling short-maturity debt and buying longer- term bonds. businessweek

On May 22, 2003, by Executive Order 13303, the President declared a national emergency protecting the Development Fund for Iraq and certain other property in which Iraq has an interest, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701-1706). The President took this action to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States posed by obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political, administrative, and economic institutions in Iraq. In Executive Order 13315 of August 28, 2003, Executive Order 13350 of July 29, 2004, Executive Order 13364 of November 29, 2004, and Executive Order 13438 of July 17, 2007, the President modified the scope of the national emergency declared in Executive Order 13303 and took additional steps in response to this national emergency. Because the obstacles to the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political, administrative, and economic institutions in Iraq continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States, the national emergency declared in Executive Order 13303, as modified in scope and relied upon for additional steps taken in Executive Orders 13315, 13350, 13364, and 13438, must continue in effect beyond May 22, 2012. Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency with respect to the stabilization of Iraq. This notice shall be published in the Federal Register and transmitted to the Congress. BARACK OBAMA http://networkedblogs.com/xPKn3