Dollar trades mixed |
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Wed, 28 Feb 2007 23:43
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NEW YORK (AP) - The dollar traded mixed against the other major currencies Wednesday as Wall Street rebounded from Tuesday's 416-point dive in the Dow industrials, and strengthened despite a pair of weak U.S. economic reports.The euro bought $1.3216 in afternoon New York trading, down from $1.3243 Tuesday.The pound fell to $1.9594 from $1.9632.The dollar bought 118.12 yen, down from 118.22 yen.Wall Street recovered from the previous session's plunge as investors took some comfort in comments from Federal Reserve Chairman Ben Bernanke, who said no single trigger set off Tuesday's market crisis and repeated that the Fed expects 'moderate growth' this year.Former Fed Chairman Alan Greenspan warned earlier this week of a possible U.S. recession by year's end, which many believed contributed to Tuesday's declines.According to preliminary calculations, the Dow Jones industrials rose 52.39, or 0.43 percent, to 12,268.63.Tuesday's nosedive could result in a continued unwinding of carry trades in China, said Dan Katzive, currency strategist at UBS AG.'Today, you see the dust clearing a bit from yesterday's shakeout,' he said.Chinese stocks rebounded Wednesday following their worst plunge in a decade amid reassurances from regulators and strong buying by government-backed institutional investors. The benchmark Shanghai Composite Index gained 3.9 percent to 2,881.07, recovering nearly half of the 8.8 percent it lost on Tuesday.Two Commerce Department reports did little to boost the dollar, showing a weaker-than-expected gross domestic product reading in the final quarter of 2006, and new-home sales falling in January by the most in 13 years.The economy grew at a weak 2.2 percent pace in the last quarter of last year, while new-home sales plummeted by 16.6 percent from the previous month.The median sales price of a new home dropped to $239,800 in January, a 2.1 percent decline from the same month last year.In other trading, the dollar bought 1.2211 Swiss francs, up from 1.2169 late Tuesday, and 1.1703 Canadian dollars, up from 1.1665.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Forex - US dollar higher in Sydney morning after global equities rout 