Dollar slips on soft economic data
Sunday, 17 February 2008
NEW YORK, Feb 16 (AFP): The dollar traded mostly lower yesterday as traders soft US economic data and mulled generally downbeat comments a day earlier by Federal Reserve chief Ben Bernanke.
The euro was quoted at 1.4683 dollars at 2200 GMT after 1.4637 late Thursday in New York.
The dollar meanwhile fetched 107.72 yen, down from 107.85 Thursday.
Dollar sentiment was dampened as a closely watched consumer sentiment index fell to a 16-year low.
In late New York trade, the dollar stood at 1.0927 Swiss francs after 1.0979 Thursday.
The pound was at 1.9612 dollars from 1.9682.
"With house prices plummeting, employment falling, stock markets in turmoil and gasoline prices still above 3.0 dollars a gallon, it is little wonder that consumers are unhappy," said Paul Ashworth, US economist at Capital Economics.
"But the extent of the decline this month suggests that a degree of panic has now set in-this is bad, very bad," he added.
The markets also reacted to news of a tepid 0.1 per cent rise in US industrial production in January, and a regional manufacturing index from the New York Federal Reserve at minus 11.7, the first negative reading since 2005.
The dollar started the day on a weak note, triggered by Bernanke's assessment of the US economy Thursday.
Bernanke told a Senate committee there were strong "downside risks" to US economic growth and that the Fed was ready to respond as necessary, a hint that dollar-negative lower interest rates might be on the way.
The euro was quoted at 1.4683 dollars at 2200 GMT after 1.4637 late Thursday in New York.
The dollar meanwhile fetched 107.72 yen, down from 107.85 Thursday.
Dollar sentiment was dampened as a closely watched consumer sentiment index fell to a 16-year low.
In late New York trade, the dollar stood at 1.0927 Swiss francs after 1.0979 Thursday.
The pound was at 1.9612 dollars from 1.9682.
"With house prices plummeting, employment falling, stock markets in turmoil and gasoline prices still above 3.0 dollars a gallon, it is little wonder that consumers are unhappy," said Paul Ashworth, US economist at Capital Economics.
"But the extent of the decline this month suggests that a degree of panic has now set in-this is bad, very bad," he added.
The markets also reacted to news of a tepid 0.1 per cent rise in US industrial production in January, and a regional manufacturing index from the New York Federal Reserve at minus 11.7, the first negative reading since 2005.
The dollar started the day on a weak note, triggered by Bernanke's assessment of the US economy Thursday.
Bernanke told a Senate committee there were strong "downside risks" to US economic growth and that the Fed was ready to respond as necessary, a hint that dollar-negative lower interest rates might be on the way.