Tags: dollar | economy | currency | forex

Dollar Declines From Six-Month High After Economic Reports

Tuesday, 26 Aug 2014 12:07 PM

The dollar declined from a six-month high against a basket of its major peers as reports showed mixed progress in the U.S. economic recovery.

The greenback weakened versus most of its 16 major peers as U.S. durable goods orders excluding transportation fell while consumer confidence improved. New Zealand’s dollar slid to the lowest in six months after the nation’s trade balance slipped into deficit while the euro touched an 11-month low against the dollar. Turkey’s lira gained on signs the central bank may pause monetary easing.

“We had a big dollar move last week, so it’d be expected that you’d have a pause,” said Greg Anderson, head of global foreign-exchange strategy in New York at Bank of Montreal. “Next week is a lot more important with a lot more first-tier data. I would be long the dollar.”

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, declined 0.1 percent to 1,029.69 as of 11:24 a.m. in New York, after earlier touching 1031.86, the highest level since Feb. 3.

The U.S. currency was little changed at 104.05 yen after touching 104.49 yesterday, the strongest since Jan. 23. The euro was little changed at $1.3200, up from an earlier low of $1.3179, a level not seen since Sept. 9. Europe’s shared currency traded at 137.34 yen.

U.S. durable goods orders excluding transportation fell 0.8 percent in July, missing the median forecast for a 0.5 percent advance, a report showed today. Overall orders jumped 22.6 percent, the most on record, as bookings surged for commercial aircraft.

Consumer confidence in the U.S. unexpectedly climbed to the highest level in almost seven years this month, a separate measure showed.

Federal Reserve Chair Janet Yellen said last week in a speech at a conference in Jackson Hole, Wyoming, that an improving U.S. jobs market may prompt the central bank to raise interest rates next year. The Fed is winding down its monthly bond-buying and has held its benchmark interest-rate target at virtually zero since December 2008.

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The dollar declined from a six-month high against a basket of its major peers as reports showed mixed progress in the U.S. economic recovery.
dollar, economy, currency, forex
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2014-07-26
Tuesday, 26 Aug 2014 12:07 PM
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