Dollar weakens after one-day rally
May 16, 2006
The US dollar was down again on Tuesday after a day of gains on Monday. The declines came on reports that housing starts in the United States were down more than had been predicted. Producer price data was also under expectations. Both items convinced analysts that there is a good chance that the Federal Reserve will not raise interest rates at its next meeting.
By the middle of the trading day in New York, the greenback had lost 0.5 percent in relation to the euro to $1.2853. The US currency was also down 0.4 percent to ¥110.05 against the Japanese yen and it declined by 0.3 percent to $1.8855 versus sterling.
Emerging currencies also against the greenback on Tuesday. The Turkish lira added 3.3 percent to TL1.4355 in relation to the US dollar, gaining back more than half its 6.1 percent slide on Monday. The South African rand got back a third of its 3 percent drop on Monday, rising 1.1 percent to R6.3550 versus the US currency.
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