Portfolio

FX round-up: Dollar begins to recover losses

Date: Friday 27 Jan 2012

FX round-up: Dollar begins to recover losses

The US dollar regained some ground on Thursday night after performing badly against other major currencies earlier on Thursday, hit by the release of weaker-than-expected US economic data.

Having plunged to a 7-week low, the currency was able to recover some of the losses, although the dollar index, which measures the greenback against a basket of six other major currencies, was still down at 79.416, compared to 79.563 late Wednesday and 80.131 before the Fed made its policy statement on Wednesday.

Last night the euro steadied against the dollar to buy $1.3107, compared to $1.3091 late Wednesday.

The dollar was able to claw back some of the losses as the rest of the world absorbed the negative data.

Included in the economic data yesterday was the news that initial weekly unemployment claims rose by 22,000 to 377,000 last week, compared to a consensus of 374,000.

Data also revealed that new home sales had taken an unexpected dive in December.

Meanwhile the pound rose to buy $1.5695, against $1.5645 late the previous evening, but rose to buy 1.1971 euro.

The Australian dollar was exchanged at $1.0621, up from $1.0595 late Wednesday, while the dollar rose from ¥77.78 to buy ¥77.48 last night.

NR

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