Dollar falls on unfavourable data
by Brian Turner
The dollar fell Wednesday on a collection of unfavorable data.
Net inflow into the US were $47.4 billion in April, not enough to cover the US trade deficit.
This was despite strong purchases of US Treasury bonds by central banks, including $6.9 billion by China, $5.7 billion by Japan, and $12.9 billion by Norway.
However, demand for US bonds and equities by the private sector was weak.
Investors tended to ignore these figures, however, on the basis that the demand for dollars has increased since April, the period for which the latest data was released.
The dollar lost 0.6 percent to $1.2106 in relation to the euro, fell 0.1 percent against the yen to ¥109.29, declined 0.8 percent to $1.8211 in relation to sterling, and lost a full 1 percent to $1.2392 against the Canadian dollar.
Sterling was strong, rising 0.2 percent to £0.6644 in relation to the euro, a 10-month high.
It also gained against the yen, up 0.7 percent to ¥198.93.
After the Norwegian prime minister said that the Norwegian krone’s two-year high in relation to the euro was “worrying”, the krone fell 0.3 percent to NKr7.8816 against the European shared currency.
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