Dollar gains on revised consumer spending data

The US dollar gained on the euro Thursday on revised data showing that consumer spending was up in the fourth quarter by an annual 2.3 percent rather than the earlier estimate of 1.9 percent but some gains were lost after financial stocks fell on reduced earnings forecasts from analysts.

In early afternoon trade in New York the dollar traded at $1.5794 to the euro.

It took ¥99.9250 to buy a dollar, while the yen was down versus the euro to ¥157.8215.

Meanwhile, the South African rand gained on the greenback on the possibility that the South African Reserve Bank will hike interest rates next month as a way to fight inflation after the Bank’s governor said that inflation is spreading from food and fuel prices to other sectors.

Factory price inflation in South Africa reached a rate of 11.2 percent on an annualized basis in February, while consumer price inflation stood at over 9 percent in February.

At around 1 p.m. in New York the rand traded at R7.9655 to the greenback.

Story link: Dollar gains on revised consumer spending data