Tuesday, May 22, 2007

Dollar Mixed Against Other Majors, Tuesday, May 22, 2007 3:57:34 PM

The dollar generally saw mixed trading on Tuesday in New York. The greenback gained to a multi-month high on the yen, but declined against the pound. Trading was uncertain with the euro. Meanwhile, the Japanese government downgraded its view on the US economy, the largest market for Japanese exports. The latest report said the pace of growth in the US economy is decelerating due to decline in housing sector activity. The prior month`s report stated that the world`s largest economy is expanding moderately.

The dollar was choppy against the euro on Tuesday in New York. The greenback touched a five-week high of 1.3438 shortly after 6 am Eastern Time. The morning`s trading took place amid the release of data showing that the German ZEW Indicator of Economic Sentiment beat expectations to continue its upward trend in May. Trading was level until about 10 a.m. ET when the dollar fell back. It got as low as 1.3470 at 10:15 a.m. ET. It climbed back late in the morning before leveling off in afternoon trading. The pair was at 1.3450 at 3:45 p.m. ET.

The greenback climbed against the yen on Tuesday in New York and touched a three-month high. The dollar dipped during the early morning, amid the release of the minutes of the last Bank of Japan policy meeting. The dollar was slightly below its overnight levels, but then soared at around 11 a.m. It stabilized in the afternoon and touched as high as 121.58 at 3:45 p.m. ET. This is its best level since late February.

Meanwhile, the dollar slipped in trading versus the British pound Tuesday in New York. The greenback slipped throughout the morning against its British counterpart. Trading on Tuesday came ahead of Wednesday`s release of the minutes from the last BoE monetary policy meeting, which left interest rates unchanged. The dollar hit a four-day low of 1.9768 at 11:45 a.m. ET. It rebounded slightly and then stabilized in the afternoon.
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