Dollar down versus euro after early gains

The US dollar weakened versus the euro on Wednesday after Federal Reserve Chairman Ben Bernanke told a joint congressional committee that the US Gross Domestic Product could contract in the first half of 2008.

The dollar had gained earlier on a private report that showed 8,000 new jobs were created in the US in March.

In midday trade, the dollar was trading at $1.5622 to the euro while it had gained slightly on the yen to ¥102.8200 but had weakened in relation to the Norwegian krone, to kr5.1561 to the dollar on higher crude oil prices.

The pound gained on both the euro and the dollar after home-loan approvals were down less than anticipated in March.

At noon in New York, the pound traded at 78.79p to the euro after rising as high as 78.53p earlier, while the pound traded at 50.43p to the dollar.

The rand strengthened in relation to the US dollar and the euro after gold prices climbed and new data showed consumer borrowing down in South Africa, making it less likely that interest rates will rise there.

At midday in New York, the rand stood at R7.8025 to the dollar and at R12.189 to the euro.

Story link: Dollar down versus euro after early gains