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Super dollar fades on signs of US slowdown

Super dollar fades on signs of US slowdown

For his part, the yen rallied against its US counterpart, as traders continue to bet that the Bank of Japan will eventually abandon its ultra-loose monetary policy.

The data for the day showed that the total number of housing starts in the United States fell 1.4% to 1.382 million units last month. Construction permits fell 1.6% to 1.330 million.

Manufacturing activity in the Mid-Atlantic region weakened again in January. The Philadelphia Fed’s monthly manufacturing index rose to -8.9 this month from -13.7 in December, a bigger improvement than expected by economists in a Reuters poll.

Initial claims for state unemployment benefits, however, fell by 15,000 in the week ending Jan. 14, to a denationalized 190,000. Economists polled by Reuters had expected 214,000 applications.

“The housing market is in recession and the regional Fed surveys are weak and show that business activity is struggling”said Edward Moya, an analyst at OANDA in New York. “However, the initial jobless claims report reinforces the strength of the labor market. The labor market has to break for inflation to continue to come down.”

The dollar fell 0.4% against its Japanese peer at 128,475 yen, one day after the Bank of Japan’s decision to maintain its ultra-loose monetary policy.

The euro was flat against the US currency at $1.0806. On Wednesday it reached a nine-month high of $1,089, before easing ground.

The pound sterling fell slightly to $1.2344, after falling from the maximum of a month reached in the previous session, 1,244 dollars.

Source: Ambito

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