U.S. Dollar Up Against Major Currencies
By J.W. ELPHINSTONE NEW YORK
Dollar & Gold News, AP - 4 years ago
In a May 3 story about the dollar's movement against major currencies, The Associated Press reported erroneously the Swiss franc was unchanged versus the dollar. The Swiss franc rose against the dollar to 1.2356 versus 1.2358 on Tuesday. The story also reported an incorrect rate for the Canadian dollar. The dollar bought 1.1084 Canadian dollars in afternoon New York trading, up from 1.1057 late Tuesday in New York.
NEW YORK (AP) — The dollar rose slightly against most major currencies Wednesday after two U.S. reports showed strong economic activity.
The 12-nation currency bought $1.2625 in afternoon New York trading, down slightly from $1.2630 late Tuesday in New York. The British pound edged down to $1.8411 from $1.8419.
The dollar also rose against the Japanese currency as investors took profits after two days of sharp dollar declines. The dollar climbed to 113.64 yen from 113.11 late Tuesday.
The Institute for Supply Management reported Wednesday that its index of service-sector activity rose to 63 in April, up from 60.5 in March. A reading of 50 and above indicates a growing service sector, while a figure below 50 signals contraction. April's showing was better than analysts expected; they were forecasting a reading of 59.2.
In a second report, the Commerce Department said that new bookings placed with manufacturers jumped by 4.2 percent in March, up from a 0.4 percent increase in February. The performance exceeded economists' forecast of a 1.5 percent rise.
The markets are looking ahead to the European Central Bank's policy meeting on Thursday to glean insights on future interest-rate movements there, according to Michael Woolfolk, a senior currency analyst at the Bank of New York.
ECB officials have said that they expect to increase rates in the near future, and analysts are predicting that a half percent increase could come in June or July.
By contrast, the U.S. Federal Reserve has indicated that it may pause its credit-tightening campaign soon. The central bank has hiked interest rates 15 consecutive times since June 2004, which has boosted the dollar.
"One and done is the prevailing mood of the markets," Woolfolk said. "The markets expect one more hike at the May meeting and then done for awhile."
The Swiss franc rose against the dollar to 1.2356 versus 1.2358 on Tuesday.
The dollar also rose against the Canadian dollar Wednesday, one day after the Canadian loon breached 90 cents, the first time since 1978. The dollar bought 1.1084 Canadian dollars in afternoon New York trading, up from 1.1057 late Tuesday in New York.