• US dollar higher against euro, drops against yen

    NEW YORK, August 30, 2010 (AFP) – The US dollar gained ground Monday against the euro but fell against the yen as new data heightened concern about the recovery of the world’s largest economy.

    The euro fell to 1.2663 dollars in New York at 2100 GMT from 1.2751 dollars late Friday.

    The US currency fell against the Japanese currency, fetching 84.55 yen compared to 85.19.

    “There is a little bit of caution at the beginning of the new week, that is helping the dollar and that is helping the yen,” said Wells Fargo analyst Nick Bennenbroek.

    The yen’s rise defied an announcement by the Bank of Japan that it would extend a multi-billion-dollar loan programme.

    The decision came after an emergency meeting called in response to strong pressure from officials to curb the yen’s rise and support an economy mired in deflation. The unit hit a 15-year high against the dollar last week.

    The rising yen is seen as a threat to growth, raising prices on Japanese exports and reducing the competitiveness of Japanese industry.

    Meanwhile in the United States, data showing consumer spending rose to a disappointing 0.4 percent and incomes rose 0.2 percent last month underscored fears that the US economy was .

    Consumer spending is a key driver of US economic growth, usually accounting for two-thirds of output.

    “The majority of the decline was simply because of this morning’s numbers. We got some very disappointing income numbers, and figures showing spending is outpacing income,” FTN Financial analyst Lindsey Piegza told AFP.

    All eyes will turn to the release of the monthly employment data on Friday, with most analysts forecasting non-farm payrolls to fall by 118,000 in August and unemployment to edge up to 9.6 percent from the current 9.5 percent rate.

    On Wednesday, the Institute for Supply Management index is expected to show slower manufacturing output.

    Against other key currencies, the dollar fell to 1.0254 Swiss francs from 1.0278 on Friday while the British pound was down to 1.5460 dollars from 1.5517.

    1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

    Loading ... Loading …

    Comments are closed

  • Christina Yu Yu, PhD, an expert in Chinese art and culture, began her new role as director of USC Pacific Asia Museum (USC PAM). Among her priorities for the museum will be recruiting a new curator to help with selection of exhibitions and to direct co...
    Happy New Year! Rose Parade Float Trophy Winners...
    The Greater Los Angeles County Vector Control District issued a warning to San Gabriel Valley residents to be on the lookout for an invasive species of insect called the Asian Tiger Mosquito (Ae. albopictus) which could be carrying a debilitating virus...
    The Ice House on September 11 will present Last Comic Standing finalist Lachlan Patterson for one show only....
    Local fine artist Sam Nicholson is donating 25 percent of any of his paintings purchased by supporters of the Pasadena-headquartered non-profit Hillsides....
    Directory powered by Business Directory Plugin