US dollar, euro both weaker

The US dollar was weaker on Tuesday after new data showed that housing starts were down in May. The greenback was steady versus the euro at $1.3410, but it dropped 0.2 percent to sterling, to $1.9880.

Otherwise, the euro saw declines on Tuesday on lower investor confidence in Germany in June. The shared currency was down 0.2 percent to SFr1.6630 versus the Swiss franc by midday in New York, while it fell 0.3 percent against both the yen and sterling to ¥165.40 and £0.6743 respectively.

Investors continued to sell the yen to finance carry trades, a situation that the governor of the Bank of Japan as well as the vice-minister of finance said they are watching closely. Still, the Japanese currency managed to add 0.2 percent to ¥123.40 in relation to the US dollar.

The Canadian dollar added 0.6 percent to C$1.0650 versus the greenback on new data that tends to make analysts believe that the Bank of Canada will issue an interst rate increase in July, Meanwhile, the New Zealand dollar advanced 0.2 percent against the yen to ¥93.40, while it gained 0.4 percent to $0.7570 against the US dollar. The gains came despite recent attempts by the Reserve Bank of New Zealand to halt recent advances in the kiwi’s value.

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