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
An aviation agreement has been signed today by the European Union and the Vietnamese authorities which will remove nationality restrictions in the bilateral air services agreements between EU Member States and Vietnam.
more »
The European Investment Bank marked the 50th anniversary of the Republic of Cyprus and its 30 years of activity in the country with a public ceremony celebrating the signature of a total of EUR 180 million for urban environment.
more »
In response to the financial crisis, the Commission has put forward legislative proposals to strengthen and expand existing tools for coordinating economic and fiscal policy in the EU.
more »
In the first meeting of the SME Finance Forum, possible means to improve the current situation of access to finance were discussed, such as the introduction of a grace period for firms in difficulties, the involvement of credit mediators and improved loan guarantees.
more »
The EU budget is no simple matter, but then no budget ever is.
more »
Parliament will be crucial in avoiding a “lowest common denominator” approach when helping to design the EU's new economic governance architecture, ECB president Jean-Claude Trichet told the Economic and Monetary Affairs Committee on Monday.
more »
With a multitude of language-related events taking place on or around 26 September, the main themes for this year's European Day of Languages are business and jobs.
more »
The EU disbursed today € 1.15 billion to Romania, the third instalment of a € 5 billion loan, which was agreed in May 2009 as part of a multilateral financial assistance package.
more »
The European Investment Bank has agreed to lend GBP250 million for the replacement, reinforcement and expansion of the gas distribution networks operated by Scotland Gas Networks and Southern Gas Networks.
more »
The bargaining positions of all players in the human food chain must be rebalanced, and fair competition enforced by law, to ensure fair returns to farmers and price transparency to consumers, says Parliament in a resolution voted on Tuesday.
more »