USD weakens on mortgage company losses

The US dollar was weaker in relation to the euro and the yen on an announcement that mortgage company Fannie Mae (NYSE: FNM) lost over 2 billion dollars in the first quarter of the year and expects to lose even more next year.

Meanwhile, the euro was helped by a jump of 5.7 percent in producer prices in euro-using countries in March.

In late morning trade in New York, the dollar was at $1.5558 to the euro while it took ¥104.4250 to buy a dollar.

The Swiss franc was stronger versus the Brazilian real, the Australian dollar, and the British pound on sentiment that investors are ready to step away from risky carry trades.

The Swiss currency traded at R$1.5901 to the franc at around 11:30 a.m. in New York, while at the same time it was at SFr2.0684 to the pound and a franc was worth A$1.0066.

The Australian dollar as well as the New Zealand dollar were both stronger versus their US counterpart on interest rate speculation, which had New Zealand rates remaining the same until at least the fourth quarter and raised the possibility that Australia rates could go up if inflation continues to grow there.

The Australian dollar traded at 94.91 cents US at late morning in New York, while at the same time the New Zealand dollar was at 79.16 cents US.

Story link: USD weakens on mortgage company losses