News Column

Dollar Still At 6-Year Low Versus Sterling

July 2, 2014

WASHINGTON (Alliance News) - The dollar was mixed Wednesday, staying near six-year lows against the sterling despite a positive US private sector payrolls report.

Payroll processor ADP said employment in the private sector surged up by 281,000 jobs in June following an increase of 179,000 jobs in May.

It will take more good news from the jobs market to change expectations that the Federal Reserve will keep its benchmark interest at zero for another year.

At the same time, upbeat economic data from the UK has traders betting the Bank of England will soon hike rates.

UK house prices expanded at the fastest pace since 2005 in June with sharp annual growth in London, even as measures taken by the government helped to bring down overall mortgage approvals.

The dollar dropped to USD1.7150 versus the sterling, its lowest since the financial crisis in 2008.

The buck was able to steady near USD1.3650 after hitting a 6-week low of USD1.37 in the previous session.

Producer prices in the euro area declined at a slower pace for the second straight month in May, in line with the expectations of economists, figures from Eurostat showed Wednesday.

Industrial producer prices in the domestic market dropped 1.0% year-on-year in May, slower than April's 1.2% decline, in line with economists' expectations.

The dollar was slightly stronger at Y101.80 versus the yen, bouncing bank to the middle of a long-term trading range.

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Source: Alliance News

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