Tuesday, June 26, 2007

Buck Slips Against Yen; Little Changed Against Other Majors, Tuesday, June 26, 2007 3:20:43 PM

The U.S. dollar slipped against the yen and was little changed against the euro and sterling on Tuesday. Trading took place amid a report from the U.S. Commerce Department that revealed new home sales dropped 1.6% in May. Meanwhile, a report showed a bigger than expected drop in consumer confidence in June.

The dollar was choppy with the euro on Tuesday in New York and was back at its overnight levels in mid-afternoon action. The greenback rallied in the morning and hit as high as 1.3431 at 3:15 a.m. ET. The buck edged lower from there and reached an intraday low of 1.3477 at 8:30 a.m. ET. The buck moved a little higher later in the morning before stabilizing in the afternoon. The currencies traded at 1.3467 at 2:50 p.m. ET. Traders considered data that showed the working day and seasonally adjusted current account of the euro area witnessed a deficit of 4.0 billion euros in April. This compares with the current account surplus of 6.7 billion euros in March, revised up from 5.4 billion euros estimated initially.

The greenback was little changed with the sterling on Tuesday in New York. The dollar climbed in the early morning, reaching as high as 1.9958 at around 3:30 a.m. ET, but fell from there and reached as low as 2.0016 at around 8:30 a.m. ET. The buck rallied back before settling into a range by 10 a.m. ET. The pair traded at 1.9985 at 2:55 p.m. ET. Sterling traders await Thursday`s UK house prices data.

The dollar slipped slightly against the Japanese yen on Tuesday in New York. The greenback moved lower in the early morning, reaching a 12-day low of 122.80 at 5:15 a.m. ET. The buck rebounded in the late morning, though, and got back to its overnight levels. The greenback edged lower in the afternoon and traded at 123.25 at 3 p.m. ET. Early trading took place as the Bank of Japan said the corporate service price index grew 1.4% annually in May, faster than the 1% increase in the previous month.
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