US dollar lower on government buyout scheme

The US dollar declined Monday on concerns that the nation’s deficit could rise significantly if the government scheme to buy $700 in bad debt from banks is carried out, while the dollar was also hurt by forecasts that new data will show home sales and orders for durable goods were down again last month.

In late morning trade in New York, the dollar was at $1.4683 to the euro while it took ¥106.4450 to buy a dollar.

The yen gained on the Australia and New Zealand dollars investors became less willing to buy higher-yielding currencies.

The yen traded at ¥89.8502 to the Aussie and at ¥73.807 to the New Zealand currency at late morning in New York.

Meanwhile, the South African rand fell versus the greenback and the euro after President Thabo Mbeki resigned, a move which could lead to the sale of South African assets by foreign investors.

In late morning trade in New York the rand was at R7.9675 to the US dollar and at R11.695 to the euro.

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