Expected end to rate cuts helps USD

The US dollar gained on the euro on Tuesday as expectations grow that the US Federal Reserve will indicate that it is near the end of its series of interest rate cuts and after the Conference Board index showed that consumer confidence in the US was down less than expected in April.

In late morning trade in New York, the dollar was at $1.5592 to the euro after touching a three-week high at $1.5541 earlier while the greenback and the euro were both weaker in relation to the yen, to ¥103.5300 and ¥161.4292 respectively.

The pound was weaker after the Bank of England reported that only 64,000 new loans to buy homes were granted in March, their lowest level in 9 years, raising expectations of more interest rate cuts to come in the UK.

At just past 11:30 a.m. in New York, it took $1.9735 to buy a pound while the UK currency traded at 79.04p to the euro.

The Australia and New Zealand dollars both weakened against the US dollar and the yen, on expectations that the Reserve Bank of New Zealand will cut interest rates in June and on new data showing that Australia’s leading economic indicators were down for the third month in a row in February.

The Aussie bought 93.40 cents US or ¥96.6970, while the kiwi was worth 77.53 cents US or ¥880.265 at late morning in New York.

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