RTTNews - The dollar was mixed against other major currencies Monday morning in New York, gaining on the yen but falling sharply against the resurgent sterling.
Its been a rough month for the dollar amid optimism that the global economic recovery may be getting underway, fueling appetite for higher-yielding currencies. Meanwhile, speculation that the US may lose its AAA rating has caused traders still looking for a safe haven to flock to the yen.
The yen's most recent move to the upside versus the dollar may have been a bit overdone. The dollar rebounded versus its Japanese counterpart Monday morning, rising to 96 from a 2-month low of 94.54.
Monday, a report from the Cabinet Office showed that Japanese consumer confidence rose to 33.2 in April from 29.6 in the previous month. Economists had expected the index to rise to 31.
Against the sterling, the dollar remained on the defensive, slipping more than a penny to 1.5300. With the loss, the dollar moved back toward a 4-month low of 1.5252, set a week ago.
U.K. house prices rose for the fourth month in a row in May, a closely watched survey revealed Monday.
Driven by ambition, optimism and necessity, new sellers pushed up asking prices by 2.4% month-on-month in May to GBP 227,441 from GBP 222,077 in April, property website Rightmove said.
While the dollar has struggled to stabilize versus the sterling, it has managed to find its footing against the euro amid concerns about the economic state of the euro area. With traders betting that recessionary pressures in the euro area will linger, the dollar improved to 1.3480, up from last week's monthly low of 1.3721.
Eurozone trade balance unexpectedly swung to surplus in March, despite exports and imports being in the negative territory, official report showed Monday.
In the US, the National Association of Homebuilders' is scheduled to release the results of their survey on homebuilders' confidence for April at 1 PM ET on Monday. The March reading was the highest since October. All three sub-indexes improved, with the indexes for present conditions, future sales outlook and prospective buyers traffic rising in the month.
Reports on housing starts, leading economic indicators, and Philadelphia-area manufacturing activity are on tap later this week, along with the release of the minutes of the latest Federal Reserve policy making session.
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