Dollar Strengthens as U.S. Growth Accelerates and Yields Rise
Published:
31 July 2003 y., Thursday
The dollar rose against the euro and yen in New York trading as the Federal Reserve said U.S. growth is accelerating. Ten-year Treasury note yields near the highest in a year also fueled gains for the currency.
The beige book, the Fed's anecdotal report on the economy, found ``signs that the pace of economic activity increased a notch during June and the first half of July.'' Reports tomorrow and Friday may show strength in employment and manufacturing, according to a Bloomberg News survey of economists.
The dollar strengthened to $1.1349 per euro at 5 p.m. in New York from $1.1442 yesterday. It has gained against the 12-nation European currency in six of the past nine weeks, paring its decline on the year to 7.5 percent.
The euro, which reached a record high of $1.1933 in May, ``has probably overshot a bit, just as it undershot two years ago,'' when it fell as low as 83.52 U.S. cents, Niall Fitzgerald, co-chairman of Unilever, the No. 1 maker of household products, said in a televised interview with Bloomberg.
The dollar also advanced against the Japanese currency, to 120.25 yen from 119.93.
Expectations low interest rates, tax cuts and a weaker dollar are fueling growth may boost the dollar by spurring foreign investors to buy U.S. assets. The U.S. requires about $1.5 billion a day of foreign investment to offset its trade deficit or the dollar will lose value.
Šaltinis:
Bloomberg
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Mr. Olli Rehn, European Union Commissioner, and Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), issued the following joint statement on Greece.
more »
The offering of shares of the new issue will commence on 03-05-2010.
more »
The World Bank today approved a $12 million IDA credit to Bhutan, designed to improve infrastructure services in parts of the capital city of Thimphu where no formal services are currently available.
more »
Fisheries ministers and stakeholders alike will be discussing the future shape of the EU's Common Fisheries Policy at two major events in Spain over the next days. On 2 and 3 May, in La Coruña, the Commission and the Spanish Presidency are organising a large stakeholder conference on the reform of the Common Fisheries Policy.
more »
Asia is leading the global recovery and the region’s contribution to global growth will continue to exceed that of other regions in the next two years, the International Monetary Fund (IMF) said today in its latest Regional Economic Outlook (REO) for Asia and the Pacific.
more »
The EBRD is supporting the modernization of the electricity distribution network and the development of renewable energy sources in Poland with a PLN 800 million loan (equivalent to approximately €205 million) to the Energa energy group in order to help the company strengthen its power grid.
more »
At the beginning of the summer this year, Vilnius will become the capital of the Baltic Sea region. On 1-2 June 2010, the city will host the Baltic Sea States Summit and the Baltic Development Forum (BDF) Summit.
more »
Visitors of the World Expo 2010, which will open in the Chinese city of Shanghai on May 1st under the slogan “Better City, Better Life” and will last for 184 days until the end of October, are kindly invited to get into a hot air balloon at the Lithuanian Pavilion.
more »
According to preliminary data, unaudited net loss sustained over the first quarter of the year 2010 by SEB Bank is LTL 59,4 million (EUR 17,2 million) and that by SEB Bank Group is LTL 80,3 million (EUR 23,3 million).
more »
European Globalisation Adjustment fund (EGF) aid must be delivered faster and more simply to unemployed workers hit by the financial crisis or globalisation, concluded the Budgets and Employment committees after evaluating the fund on Wednesday.
more »