Global financial markets sharpened risk appetite
Posted on April 26, 2009
Sterling sank however on news that the British economy plunged deeper into recession in the first quarter of 2009.
Against the Japanese currency, the dollar eased to 97.13 yen from 97.95 yen on Thursday.
With the currencies sensitive to signs of economic turmoil, Boris Schlossberg at Global Forex Trading said the dollar fell on better-than-anticipated reports on new US home sales and durable manufactured goods orders.
The dollar has been seen as a safe haven from market turbulence, so the improved data hurt the greenback.
Durable order fell 0.8 per cent amid expectations for a 1.5 per cent drop but Schlossberg said a key measurement of future activity, capital spending rose for the second consecutive month, suggesting of a possible turnaround in the not too distant future.New US home sales fell 0.6 per cent in March from an upwardly revised level in February, another sign of a potential improvement.
After quizzing 7,000 German companies in manufacturing, construction, wholesaling and retail, the Ifo institute said its closely-watched indicator rose to 83.7 points in April, from an all-time low of 82.2 points in March.
Economists see the Ifo index as a key leading indicator to gauge the future health of the economy. It has been falling steadily — with occasional blips — since June 2008 as sentiment among corporations plummets.
The poound was hurt on news that British gross domestic product (GDP) contracted by 1.9 percent on a quarterly basis compared with a decline of 1.6 per cent in the last quarter of 2008, marking the worst performance in almost 30 years.
In late New York trade, the dollar stood at 1.1369 Swiss francs from 1.1503 Thursday.
The pound was at $1.4663 after 1.4721
