NEW YORK – The dollar slid Wednesday as improved bank and technology earnings, strong retail sales and accelerating economic growth overseas drove traders into riskier investments such as commodities and emerging-market currencies.
Meanwhile Federal Reserve Chairman Ben Bernanke told Congress' Joint Economic Committee that he has confidence the unfolding economic recovery will have staying power. He also repeated the Fed's pledge to keep interest rates at record lows for an "extended period." Low interest rates have weighed on the dollar.
The euro rose to $1.3656 in late New York trading from $1.3594 late Tuesday. The European currency has been moving higher since European leaders and the International Monetary Fund released details of a rescue plan for Greece if the heavily-indebted country needs it.
The dollar dropped against nearly all of the most active currencies Wednesday as the government said U.S. retail sales jumped more than economists had estimated. Better-than-expected earnings from JPMorgan Chase & Co. and Intel Corp. also pushed the safe U.S. currency lower.
In other late trading, the British pound rose to $1.5473 from $1.5375. The dollar slid to 1.0519 Swiss francs from 1.0545 francs and dropped to its lowest point since June 2008 versus the Canadian dollar at 99.95 Canadian cents from 1.0026 Canadian dollars late Tuesday. The dollar was flat against the Japanese yen which is also seen as a safe haven, at 93.15 yen.The dollar was lower against currencies from developing countries in Latin America and Asia. The Mexican peso and the Brazilian real rose after strong retail sales data from Brazil. Singapore's extremely fast growth during the first quarter and an upgrade for South Korea's credit rating from Moody's Investors Service helped send Asian currencies higher.
Niciun comentariu:
Trimiteți un comentariu