The US dollar declined against it major currencies on Thursday after release of US housing and manufacturing data. The greenback surged in the start of the session for few moments on reduced jobless claims but later plunged on latest figures of Philadelphia’s Federal Reserve Bank.
The Federal Reserve Bank of Philadelphia’s index of current activity plunged to 3.9 in the month of May as compared to 18.5 in April. This also happens to be the lowest reading since the month of October.
The dollar index which measures the US dollar’s performance against its six major rival currencies declined to 75.106 on Thursday as compared to 75.438 on Wednesday’s North American trading session.
Existing home sales also considerably fell as compared to wide expectations. Director of currency research Kathy Lien from GFT commented, “The data show the U.S. recovery progressing at a glacial pace and explains why the [Fed] has been slow to normalize monetary policy.”
The euro gained to 1.4308 versus the greenback on Thursday as compared to 1.4233 on Wednesday’s late trading hours. However investors are still uncertain about the single currency due to euro zone’s sovereign debt problems.
The US dollar however gained versus the Japanese Yen as economic after affects of tsunami and nuclear crisis are still behind the world’s sluggish economic growth. The Japanese economy has shrunk by 3.7 percent since the March 11th Earthquake.
The US dollar surged to 81.61 versus the Japanese yen on Thursday as compared to 81.58 on late Wednesday.
The British Pound gained to $1.6207 on Thursday as compared to 1.6149 on Wednesday late trading hours.
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