Sun, Nov 19, 2006 - Page 10 News List

Disappointing US economic figures drag dollar down

AFP AND CNA , NEW YORK AND TAIPEI

The US dollar weakened on currency markets on Friday after holding its own during the week against the impact of disappointing US economic data.

The euro rose to US$1.2825 around 10pm GMT against US$1.2793 late on Thursday in New York. The dollar was lower at ¥117.71, down from ¥118.20 on Thursday.

The greenback had managed to rise throughout the week despite soft US economic data including retail sales and inflation.

Initially on Friday, it even brushed aside a hefty drop of 14.6 percent in US housing starts last month to a six-year low of 1.486 million units.

"The dollar's been incredibly resilient in the course of the week, and we're just seeing some end-of-week closing," said Ian Stannard, currency strategist at BNP Paribas.

Traders were also closing out positions in anticipation of a quiet week ahead, which will be shortened in the US because of Thanksgiving Day celebrations on Thursday.

"After a raft of economic indicators, the markets will have little US data to trade on during this holiday-shortened week," Calyon analyst Michael Carey said.

The greenback has been underpinned by hawkish comments from US Federal Reserve officials as well as the minutes to the Fed's last rate-setting meeting last month, when policymakers left their benchmark rate at 5.25 percent.

The pound stood at US$1.8953 in late trade, up from US$1.8876 on Thursday. The US dollar bought 1.2437 Swiss francs, from SF1.2479.

The US currency rose against the New Taiwan dollar in Taipei on Friday, gaining NT$0.091 to close at NT$32.934.

This story has been viewed 1794 times.
TOP top