News Column

Dollar notches weely broad gain but fails against Euro

February 22, 2014

The U.S. dollar retreated against the Euro Friday after poor housing data from the U.S. further stoked concerns over the U.S. economy; however the dollar was on track for its first board gain against other majors in three weeks. The National Association of Realtors said Friday that home sales dropped 5.1 percent to an annual rate of 4.62 million units in January, an 18-month low . The data added to recent weak U.S. economic data on retail sales and homebuilder confidence, which comes in the wake of the coldest winter in over 20 years. The euro hit a high of $1.3759 against the dollar and was last trading up 0.18 percent at $1.3742 , putting the dollar on track to notch its third weekly loss. The dollar was slightly lower against a basket of major currencies, at 80.24. The dollar index has regained some footing after touching a trough of 79.927 on Wednesday, its lowest level since late December. Despite the latest weak U.S. economic data, traders have been reassured after the release on Wednesday of the minutes from the Federal Reserve`s January 28-29 policy meeting that the Fed`s asset reduction plan remains intact. The minutes showed that several policymakers wanted to emphasize that their asset purchase program would be trimmed in predictable, $10 billion steps unless the economy`s performance surprises them. Traders are watching for developments from this weekend`s Group of 20 meeting of finance ministers and central bank chiefs in Sydney, where global growth and recent turmoil in emerging markets are expected to be in focus. Emerging market officials are pushing for a discussion of the impact of the Fed`s stimulus withdrawal on their economies, a top Russian central banker said on Friday, according to Reuters. But the Fed`s focus is likely to remain on U.S. economic conditions rather than the implications of tapering on emerging markets, analysts said. The dollar also rose to a three-week high versus the yen. The USD/JPY was last up 0.29% at 102.553. It hit a peak of 102.82 yen, its strongest level since late January. A jump in the Nikkei index weighed on the safe-haven yen and gave the dollar an additional boost.        

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Financial Markets

Story Tools