US dollar weakens, sterling stronger on session

The US dollar weakened on Monday after new figures from the Commerce Department showed that the sale of new homes dropped by 3.9 percent in February. At mid-afternoon in New York, the greenback had dropped 0.2 percent against the Japanese yen, to ¥117.85, while it fell 0.4 percent versus both the euro and the Swiss france to $1.3335 and SFr1.2140 respectively.

The yen declined after the minutes from February’s meeting of the Bank of Japan, where the decision was made to raise interest rates there, were released. The Japanese currency was 0.2 percent lower against both the euro and sterling, to ¥157.14 versus the shared currency and to ¥232.05 against the pound.

Sterling strengthened after new data showed that UK house prices gained an annualized 6.7 percent in March, growth that was stronger than had been anticipated, raising expectations of an April interest rate hike by the Bank of England. The UK currency was 0.1 percent higher in relation to the euro, to £0.6770, while it was up 0.4 percent to $1.9692 versus the US dollar.

The Norwegian krone added 0.4 percent to NKr8.110 versus the euro on the news that Norway’s unemployment rate is the lowest it has been in 20 years. Interest rates there are expected to go up to around 5 percent, from their current 4 percent, by the end of the year.

New Zealand’s trade deficit was lower than expected, sending the dollar there up 0.9 percent versus the US dollar, to $0.7161.

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