Dollar dips against euro despite buoyant data
Sunday, 27 July 2008
NEW YORK, July 26 (BSS/AFP) - The dollar dipped against the euro yesterday as investors sought a safe haven despite economic reports that offered signs of a possible US recovery underway.
The euro was at 1.5703 dollars around 2100 GMT, up from 1.5683 late Thursday.
The dollar rose to 107.85 yen from 107.19.
In late New York trade, the pound was at 1.9913 dollars, up from 1.9865 late Thursday.
The dollar stood at 1.0366 Swiss francs, nearly unchanged from 1.0364.
"Stronger economic data has driven the US dollar higher against many of the major currencies," Kathy Lien, chief strategist at Forex Capital Markets, said.
US durable goods orders rose 0.8 per cent in June, much stronger than analyst forecasts for 0.3 per cent.
Economists said the data suggested that US second-quarter gross domestic product (GDP) growth could prove healthy.
"Overall, a surprisingly strong report, which supports our view that second- quarter GDP increased by a solid 2.5 per cent on the year," said Paul Ashworth, senior US economist at Capital Economics.
The US government is due to release its initial estimate of second-quarter GDP growth Thursday. Most analysts expect a smaller acceleration to a 1.8 per cent pace.
The Federal Reserve on Wednesday said in its Beige Book report that US economic activity appears to have slowed to a crawl in the past weeks even as price pressures intensified.
The Fed's latest survey of the US economy will be used by its policymakers for their August 5 meeting. They are widely expected to leave the key interest rate unchanged at 2.00 per cent.
The euro was at 1.5703 dollars around 2100 GMT, up from 1.5683 late Thursday.
The dollar rose to 107.85 yen from 107.19.
In late New York trade, the pound was at 1.9913 dollars, up from 1.9865 late Thursday.
The dollar stood at 1.0366 Swiss francs, nearly unchanged from 1.0364.
"Stronger economic data has driven the US dollar higher against many of the major currencies," Kathy Lien, chief strategist at Forex Capital Markets, said.
US durable goods orders rose 0.8 per cent in June, much stronger than analyst forecasts for 0.3 per cent.
Economists said the data suggested that US second-quarter gross domestic product (GDP) growth could prove healthy.
"Overall, a surprisingly strong report, which supports our view that second- quarter GDP increased by a solid 2.5 per cent on the year," said Paul Ashworth, senior US economist at Capital Economics.
The US government is due to release its initial estimate of second-quarter GDP growth Thursday. Most analysts expect a smaller acceleration to a 1.8 per cent pace.
The Federal Reserve on Wednesday said in its Beige Book report that US economic activity appears to have slowed to a crawl in the past weeks even as price pressures intensified.
The Fed's latest survey of the US economy will be used by its policymakers for their August 5 meeting. They are widely expected to leave the key interest rate unchanged at 2.00 per cent.