RTTNews - The dollar fell versus the loonie but was stable versus other majors on Monday as a shortage of economic data and the midsummer doldrums kept trading activity light.
After some early weakness versus the resurgent yen, the dollar managed to stabilize. However, the dollar hit the skids versus the loonie after the Bank of Canada's summer survey indicated that businesses foresee an improvement in the economic outlook north of the border.
The buck slipped to a fresh 5-month low of 91.73, but recovered a bit of lost ground to fetch 92.65 by mid-day.
Concerns about government spending and a potential second round of economic stimulus have recently led traders to the safety of the yen.
Japanese industrial production growth was revised down for May, yet the third straight month of growth points towards a possible recovery in the recession-hit economy. Meanwhile, consumer confidence strengthened for the sixth month in a row.
Versus the loonie, the dollar dropped to a 2-week low of 1.1523, down more than a penny from its overnight level. The Bank of Canada summer survey said that most firms expect at least some growth in their sales over the next 12 months.
The dollar extended its long run of choppy trading versus the euro, holding between 1.3900 and 1.4000 over the course of the day. There were no first-tier economic data from the euro zone.
Versus the sterling, the dollar slipped back to 1.6210 from an early high near 1.6050. Earlier this week, the dollar hit a monthly high of 1.5982.
The U.S. budget deficit broke past $1 trillion in June, the Treasury Department said Monday in its monthly budget statement.
The budget is considered as an indicator of budgetary trends and the thrust of fiscal policy. Economists estimated a deficit of $77.5 million for June.
Data on retail sales, producer and consumer prices, housing starts and weekly employment will guide trading later in the week.
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