Connect to share and comment

Dollar firms on back of upbeat US data

PlacardEnlarge
(Globalpost/GlobalPost)

The dollar strengthened against other major currencies Tuesday, boosted by a batch of positive US economic data.

The euro fell to $1.3083 around 2100 GMT, down from $1.3122 at the same time Monday.

The dollar rose to 97.80 yen from 97.70 yen late Monday, while the euro also gained against the Japanese currency, buying 127.95 yen compared with 128.21.

The euro, which stabilized against the dollar late Monday, weakened after positive US economic indicators "set the tone for the day," said Charles St-Arnaud of Nomura.

"Good durable goods orders and a very strong increase in consumer confidence appeared to signal healthy economic activity in the United States in the coming months, which allowed the dollar to rise in value," he said.

The positive data helped US stocks advance as market worries eased over a credit crunch in China.

Meanwhile, the euro was pressured by comments from European Central Bank chief Mario Draghi, said Nick Bennenbroek of Wells Fargo Securities.

"He said the economic outlook still warrants an accommodative monetary policy stance, and that the ECB's bond-buying program is even more essential now than previously," Bennenbroek said.

The dollar firmed to 0.9377 Swiss franc from 0.9328 franc late Monday.

The pound fell to $1.5421 from $1.5436 a day earlier.

bur-vs/pmh

http://www.globalpost.com/dispatch/news/afp/130625/dollar-firms-back-upbeat-us-data