2013-02-28 21:54:01 US Session – Dollar up as US Federal budget cuts in focus
February 28, 2013 9:54 pm
The dollar extended gains today after being boosted by encouraging US economic data. There was a drop in new jobless claims last week and also there was a sharp rise in factory activity in the Midwest in February. These give good indications that the world’s largest economy is improving.
Meanwhile the dollar is also helped by demand for its safe haven status amidst the political stalemate in Italy. Other risk causing flight to safety in the USD is the looming federal budget cuts in the US that are due on March 1st. This so called “sequestration”.
The euro last traded at $1.3052, down 0.6 percent on the day. The single currency’s upside is seen as limited by concerns that political instability will stall Italian economic reforms and reignite the euro-zone debt crisis.
Against the yen, the euro traded a range between 120.50 and 121.46 yen, but above a five-week low of 118.72 yen set on Monday.
The dollar was up 0.6 percent on the day to a high of 92.83 yen and is headed for a fifth straight month of gains versus the Japanese currency in February.
Gold moved lower due to the stronger dollar, since the two assets usually have an inverse price relationship. Gold prices fell to $1,574.81, down $20 on the day. It is poised for a monthly decline of about 4 percent. The precious metal has had its longest run of monthly declines in more than 16 years.
The dollar extended gains today after being boosted by encouraging US economic data. There was a drop in new jobless claims last week and also there was a sharp rise in factory activity in the Midwest in February. These give good indications that the world’s largest economy is improving.
Meanwhile the dollar is also helped by demand for its safe haven status amidst the political stalemate in Italy. Other risk causing flight to safety in the USD is the looming federal budget cuts in the US that are due on March 1st. This so called “sequestration”.
The euro last traded at $1.3052, down 0.6 percent on the day. The single currency’s upside is seen as limited by concerns that political instability will stall Italian economic reforms and reignite the euro-zone debt crisis.
Against the yen, the euro traded a range between 120.50 and 121.46 yen, but above a five-week low of 118.72 yen set on Monday.
The dollar was up 0.6 percent on the day to a high of 92.83 yen and is headed for a fifth straight month of gains versus the Japanese currency in February.
Gold moved lower due to the stronger dollar, since the two assets usually have an inverse price relationship. Gold prices fell to $1,574.81, down $20 on the day. It is poised for a monthly decline of about 4 percent. The precious metal has had its longest run of monthly declines in more than 16 years.
Related Posts: