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Dollar trades in narrow range despite disappointing U.S. home sales data

Dollar trades in narrow range despite disappointing U.S. home sales data

The dollar traded narrowly mixed Monday despite disappointing U.S. home sales data that kindled worries about economic slowdown.
The 13-nation euro drifted down to $1.3653 in late New York trading from $1.3673 late Friday.
The British pound dipped to $2.0129 from $2.0134, and the dollar slipped to 116.13 yen from 116.21 yen.
The dollar showed little reaction to data Monday showing that U.S. sales of existing homes dragged to their slowest pace in nearly five years, while home prices fell for a record 12th consecutive month.
The National Association of Realtors reported that existing home sales fell 0.2 percent in July to a seasonally adjusted annual rate of 5.75 million units. Inventories climbed 5.1 percent to a record 4.59 million units.
Investors remain worried that weakness in the U.S. housing sector will spread to the wider economy.
Overseas, European Central Bank President Jean-Claude Trichet gave few hints on the bank's interest rate plans in a speech in Hungary.
Trichet spoke Monday afternoon at a conference in Budapest, Hungary, making his first public remarks since the central bank injected billions of euros into the banking system earlier this month to alleviate tighter credit availability as a result of rising mortgage loan defaults in the United States.
But he focused on production in the euro zone, telling the annual European Economic Congress that labor productivity growth had been gradually increasing since 2005.
"In the services sector it has not improved as much, even if it, too, is growing slightly," he said.
Analysts had been doubtful about prospects of the ECB raising its key refinancing rate to 4.25 percent next month, following mounting problems with credit availability. Since then, however, many analysts have reverted to predicting the quarter-point increase.
Higher interest rates, used to combat inflation, can strengthen a currency by giving investors higher returns on investments denominated in it.
Markets are also eager to see whether the U.S. Federal Reserve will lower its interest rates at its September meeting.
In other New York trading, the dollar bought 1.2031 Swiss francs, up from 1.2018 late Friday, and 1.0530 Canadian dollars, up from 1.0527.


Updated : 2021-07-28 20:41 GMT+08:00