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Dollar higher against pound, euro; dips vs yen

Dollar higher against pound, euro; dips vs yen

The dollar rose against the pound and the euro, but fell versus the yen in New York in thin trading just before the new year.
More reports on American consumers' sentiment, which fell further than expected, and home prices sent the buck down in early trading, but investors found solace Tuesday that General Motors Corp.'s troubled financing arm will receive $5 billion of financing.
The 15-nation euro slipped to $1.4087 in late New York trading from $1.4091 Monday. The euro dropped as low as $1.3919 and spiked to trade as high as $1.4221 in Monday trading.
Such sharp price movements are due to the small number of players in the market, said UBS foreign-exchange analyst Geoffrey Yu.
The British pound drifted lower to $1.4412 from $1.4555 Monday.
The pound has been battered by abysmal economic news in Britain and now finds itself near parity with the euro. On Monday, the pound hit a record low of 1.0198 euros. On Tuesday afternoon, the pound bought 1.0226 euros.
Meanwhile, the dollar slipped to 90.29 Japanese yen from 90.33 yen.
In the U.S., the Conference Board said Tuesday its consumer confidence index fell to 38 in December, a record low, from a revised 44.7 in November. Economists had expected the index to rise to 45.
The Standard & Poor's/Case-Shiller 20-city home prices index fell by 18 percent in October from a year ago. Its 10-city index dropped by 19.1 percent. Both drops mark the indices' steepest annual declines since the surveys began. Home prices are now at March 2004 levels.
The Treasury Department said late Monday it would provide the money to GMAC Financial Services LLC from the $700 billion bank rescue program. The injection is on top of the $17.4 billion in loans the Bush Administration agreed to provide to the auto industry on Dec. 19.
The news helped the market shake off the negative economic news, and the Dow Jones industrial average rose 184 points to the 8,668 level.
In other late trading, the dollar edged up to 1.0577 Swiss francs from 1.0518 francs and rose to 1.2256 Canadian dollars from 1.2104.


Updated : 2021-04-12 10:11 GMT+08:00