RTTNews - The dollar was generally stronger versus other major currencies Monday morning in New York as risk averse traders expressed some doubts about the prospect of a global economic recovery by year's end.
Although economists have been painting a rosier picture of what may be to come, speculation that equities markets may have gotten ahead of themselves and that we may be in for a double-dip recession have given the dollar a measure of support over the past few days.
While the housing market is showing signs of being on the mend, the job situation remains grim. The most important economic report of the unfolding week will be the Labor Department's non-farm payroll employment report for August, which is due out on Friday.
Looking at today's calendar, The results of the Institute of Supply Management-Chicago's business survey for August are scheduled to be released at 9:45 AM ET. Economists expect the business barometer index based on the survey to come in at 47.2.
Ahead of this reading, the dollar was slightly stronger versus the euro, holding near 1.4280. Early in August, the dollar hit its 2009 low of 1.4446, but his since fallen no further.
Eurozone consumer prices dropped 0.2% in August from the previous year, a flash estimate from the Eurostat showed Monday. Economists had expected the consumer price index to drop 0.4% in August, following a record fall of 0.7% in July.
The dollar inched higher versus the sterling, rising to 1.6200 before leveling off. U.K. house prices rose in August for the first time since July 2007, a report published by Hometrack showed Monday.
With the price of crude oil slipping back toward $70, the dllar gained on the petro-linked loonie, rising above C$1.1000.
Against the yen, the dollar pared some of its recent losses, rising to 93.50 from a monthly low of 92.53. Governor of the Bank of Japan, Masaaki Shirakawa said Japan's economic conditions are showing some signs of moderate recovery.
Over the weekend, an election win by the Democratic Party of Japan ended a half-century of almost unbroken rule by the Liberal Democratic Party.
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