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Greenback holds on to gains after strong U.S. data

Greenback holds on to gains after strong U.S. data

The U.S. dollar held on to gains in Asian trade yesterday after U.S. housing data and consumer confidence both beat forecasts to suggest strong underlying fundamentals in the US economy, dealers said.
The U.S. dollar was at 118.86 yen in Tokyo afternoon trade compared with 118.90 in New York late Thursday, slipping on position-covering after rising above 119 in the morning, dealers said.
The euro stood at US$1.3168 compared with US$1.3149 and inched up to 156.51 yen from 156.39.
"I think we will probably see a pattern of further dollar strength over the early part of 2007 but not significantly - you could see a range around current levels," Commonwealth Bank senior foreign exchange dealer Richard Grace said in Sydney.
The U.S. dollar was supported by better-than-expected U.S. data overnight, including existing home sales that rose 0.6 percent in November.
It marked the first back-to-back monthly sales gain since early 2005, although the price of homes sold fell for a record fourth consecutive month.
"The figures were better than expected in the market," said Satoru Ogasawara, strategist at the global foreign exchange research and strategy division at Credit Suisse First Boston.
"Other data we were closely watching was the consumer confidence index," he added. "That figure was firm as well."
The Conference Board reported U.S. consumer confidence perked up in December, rising sharply to 109.0 from a revised 105.3 in November.
"With those data, we feel the next move by the Fed will come pretty soon," Ogasawara said.


Updated : 2021-04-17 11:22 GMT+08:00