Wednesday, August 4, 2010

FX round-up: Dollar falls on data, Fed policy rumours


Date: Wednesday 04 Aug 2010
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The dollar fell to a four month low on Tuesday as lacklustre economic data and rumours of more US government stimulus weighed on already worried investors. 

The greenback fell to a three month low against the euro and an eight-month low against the yen as the market mulled a set of disappointing economic data. 

US factory orders fell 1.2% in June, a much greater decline than expected. The May figure was revised to a 1.8% decline. Pending-home sales for June dropped by 2.6%. The figures increased speculation that speculation that the Federal Reserve could bring in further measures to bolster the US economic recovery. 

The dollar index, which measures the US currency against a basket of six others, fell to 80.589 from 80.870 the previous session. The euro rose to $1.3233 from $1.3172. The dollar fell to 85.85 yen from 86.51 yen. 

Sterling charged to a six month high against the dollar as investors cheered strong bank earnings and recent UK economic data. The pound rose to $1.5948 from $1.5910. 
stock photo : Foreign Exchange with Global Currencies as Art

The Australian dollar was little changed after the country's central bank held rates steady.
Source:Digitallook

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