The US dollar gained traction against most major currencies on Friday after stronger-than-expected figures on US home sales eased concerns about the housing market, and the overall economy. The euro dropped to US$1.3286 at 8pm GMT after US$1.3328 late on Thursday in New York.
The New Taiwan dollar lost ground against the US dollar on the Taipei Foreign Exchange on Friday, decreasing NT$0.047 to close at NT$33.040 on turnover of US$979 million.
The US currency was trading at ¥118.05, little changed from ¥118.07 on Thursday.
US home sales rose 3.9 percent last month as the struggling real estate market showed some signs of a rebound, industry data showed on Friday.
The National Association of Realtors said existing home sales improved to an annualized pace of 6.69 million, well ahead of market expectations of a pace of 6.30 million.
The monthly report also showed signs that lower prices -- following a long boom in the property market that ended last year -- are starting to stimulate sales.
"The February existing home sales report added another dimension to speculation surrounding one of the most besieged sectors in the US," John Kicklighter at Forex Capital Markets said.
"When the indicator ran across the wires with an unexpected improvement, the dollar quickly turned higher against most of the majors," he said.
But enthusiasm was tempered by news that the median sales price fell 1.3 percent to US$212,800, the seventh decline in a row.
Property market
The property market has been struggling as lending rates have increased and speculators have pulled out of what had been a sizzling sector.
Kicklighter said the housing market and the dollar may not be out of the woods yet.
He said most of the data for last month came before the crunch in the "subprime" credit markets.
"In the end, the forecast for the housing market is still bearish," he said.
But according to analyst Jamie Coleman at Thomson's IFR Markets: "One thing is clear that was not early this week: the US is not in danger of sliding headlong into recession."
"Home sales are near a three-year high, ... employment remains strong and stocks have recovered much of their losses of recent weeks," Coleman added.
In late New York trade, the dollar stood at 1.2185 Swiss francs from SF1.2143 late on Thursday.
The pound was being traded at US$1.9613 after US$1.9643.
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