Reuters: US Dollar Report: FOREX-Dollar near 3-week low vs euro after soft U.S. data

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

FOREX-Dollar near 3-week low vs euro after soft U.S. data May 31st 2013, 00:52 Thu May 30, 2013 8:52pm EDT * U.S. jobless claims, housing data fall short of expectations * Pullback in expectations that Fed could cut bond buying soon * Yen off 3-week high on hopes of month-end flows * Japan data generally positive, Nikkei in focus By Hideyuki Sano TOKYO, May 31 (Reuters) - The U.S. dollar hovered near a three-week low against the euro on Friday after unexpectedly weak U.S. economic data dampened expectations that the Federal Reserve will reduce its monetary stimulus soon. While the yen showed little immediate response to a slew of generally positive Japanese economic data, traders were focused on whether the data would help stem a steep 6-day slide in Tokyo shares since late last week. The Nikkei average rose 1.7 percent in early trade, easing worries that further falls could prompt more profit-taking in dollar/yen. U.S. data showed weekly initial jobless claims unexpectedly rose last week and pending home sales increased less than expected. The U.S. economy grew at a slightly slower pace in the first quarter than initially estimated. "The market had gone a bit too far in expecting the Fed to taper its bond buying. The dollar may be consolidating for now," said Ayako Sera, senior market economist at Sumitomo Trust Bank. The data also supported the euro, which was trading at $1.3045, flat from late U.S. levels but near a three-week high of $1.3062 set on Thursday. The dollar's index against a basket of six major currencies last stood at 83.051 after hitting a two-week low of 82.955 on Thursday. The dollar gained 0.3 percent in early Asian trade to 101.02 yen, as expectations of month-end buying by Japanese importers lifted the U.S. currency off a three-week low of 100.46 yen hit on Thursday. The yen had also come under pressure after sources familiar with the deliberations told Reuters on Thursday that Japan's Government Pension Investment Fund (GPIF) was considering a more flexible approach to allocations, which could let its investment in domestic stocks grow in rallying markets. But analysts also noted that any change in the pension fund's investment stance will come in next year at the earliest and will have no immediate impact on the fund's investment flows. Data showed Japan's core consumer price index fell 0.4 percent from a year earlier in April, in line with expectations. But core CPI in Tokyo for May, a leading indicator, rose 0.1 percent, much stronger than economists' average forecast of a 0.2 percent fall. Job availability also improved to the best level since June 2008. Industrial output also beat expectations, rising 1.7 percent in April from the previous month. Still, on the month, the dollar looks on course to log its eighth consecutive month of gains versus the yen, the longest such period since 1995-96. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions