Thursday, July 27, 2006


Chart #4 US Dollar 6 day

1 comment:

RC said...

BERLIN — The dollar dipped against other major currencies on Friday after figures showed a sharp slowdown in economic growth in the United States.

The 12-nation euro bought $1.2748 early Friday, compared with $1.2693 in overnight trading in New York. The British pound climbed to $1.8638 from $1.8573.

The dollar also slipped against the Japanese yen to 114.74 from 115.82 late Thursday.

The U.S. Commerce Department said Friday that the country's economy expanded in the second quarter at an annual rate of 2.5 percent, compared to 5.6 percent in the previous quarter.

Data shows that U.S. consumers have tightened their belts and that spending on home building decreased. High energy prices and borrowing costs are also biting.

A weakening economy could encourage the Federal Reserve to call a pause in its policy or steadily increasing interest rates. Rising rates have boosted the dollar by making certain classes of security more attractive to international investors.

However, reports also suggest that U.S. inflation _ which central banks usually battle by raising rates _ is heating up.
http://www.chron.com/disp/story.mpl/ap/fn/4079070.html