Dollar Loses While World Economy Turns Around
July 7, 2010 |12:28 | Currency Rates By : Team X
On average the dollar lost 1.77 percent against the Australian dollar, .80 percent against the euro and was barely lower than the Japanese yen. Investors perceived weakness after the Institute for Supply Management (ISM) reported that the non-manufacturing business activity index fell from 55.4 in May to 53.8 in June.
The dollar lost .90 percent against the Canadian dollar, .14 percent against the Swiss franc and .78 percent against the euro (survey #1 results).The Aussie dollar gained 1.77 percent against the Hong Kong dollar, .865 percent against the Canadian dollar, 1.656 percent against the Swiss franc, and 1.719 percent against the British pound sterling.
Investors seem pretty confident that the Australian economy may be turning around. Reserve Bank of Australia governor Glenn Stevens said today that the global economy is expanding with strong growth in Asia and Latin America.
China is starting to moderate to a sustainable rate of growth, Stevens added. European output is improving but budgetary constraints are of concern. The U.S. labor market is slow to rebound but growth looked “stronger”. The board left the cash rate unchanged 4.5 percent, but the upbeat report hints of a future increase.
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