Tuesday, May 22, 2007

Dollar Weakens In Late Morning, Tuesday, May 22, 2007 10:37:52 AM

The dollar weakened in Tuesday`s late morning in New York. The greenback was uncertain in trading with the euro and yen, while it lost ground against the pound. 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 fell away from a five-week high against the euro on Tuesday morning in New York. The greenback touched a daily low of 1.3473 at 2:30 am Eastern Time, and reached its recent resistance level 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.

The greenback also saw choppy trading against the yen on Tuesday morning in New York. 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 into the late morning.

Meanwhile, the dollar slipped in trading versus the British pound Tuesday morning 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 slipped again a little after 10 a.m. ET and was at a four-day low of 1.9752 at 10:30 a.m. ET.
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