Tuesday, April 24, 2007

Dollar Generally Down After Plunge During Late Morning In New York, Tuesday, April 24, 2007 3:53:47 PM

The U.S. dollar was generally down for the day against its major counterparts on Tuesday. The greenback saw sharp declines at around 10 a.m. after the release of consumer confidence and existing homes data in the U.S. The greenback stayed down against the euro. The buck rallied against the other two and was slightly up for the day on the yen, but slightly down against the pound.

The dollar dropped to another two-year low against the euro on Tuesday after consumer confidence data was released in the U.S. Trading was level until about 6:30 a.m. when the dollar began to slip. The slide increased sharply after the 10 a.m. release of consumer confidence data and reached as low as 1.3634 at 10:30 a.m. ET Trading was flat from there. Trading during the morning took place amid the release of Euro zone industrial orders for February, which rose 4.7% on the year.

The greenback dropped in mid-morning trading against the pound on Tuesday in New York. Trading was sideways until about 5 a.m. when the dollar fell sharply for about two hours. Trading leveled off for a bit with the dollar getting back some of its losses. However, the buck slipped again after the consumer confidence data announcement and dropped to its lowest level in two days by 10:15 a.m. The dollar bounced back for the next few hours to get back below 2.0000, but fell back above that mark in late-afternoon trading. The pair was at 2.0009 at 3:45 p.m.

The buck dropped in late morning trading with the yen in New York, giving back gains from earlier in the day. The pair has been range bound over the last week, since the dollar moved off a two-month high against its Japanese counterpart. The dollar began moving toward the high end of the range during the early morning after data released overnight showed that Japan`s corporate service price index rose in March. The greenback touched a daily high of 118.94 around 6 am Eastern Time. The dollar began to slip at around 8 a.m. At 10 a.m. the consumer confidence report sent the dollar down sharply. The dollar, however, bounced back before noon ET before settling at around 3 p.m. ET. The pair traded at 118.56 at 3:45 p.m.

Tuesday morning, the Conference Board released its report on consumer confidence in the month of April, showing that consumer confidence deteriorated more than economists had been expecting compared to the previous month. The Conference Board said that its consumer confidence index fell to 104.0 in April from a revised 108.2 in March. Economists had been expecting the index to fall to 105.0 compared to the 107.2 originally reported for the previous month. Separately, the National Association of Realtors said that existing home sales fell 8.4% to a seasonally adjusted annual rate of 6.12 million units in March from a 6.68 million unit rate in February. Economists had been expecting a more modest decline to a 6.45 million unit rate.
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