Yen, USD weaken on US GDP report

The yen and the US dollar both weakened Wednesday on the possibility that the global recession may have bottomed out as the US Commerce Department reported that the US gross domestic product dropped by just 6.1 percent in the first quarter after a 6.3 percent decline in the fourth quarter of 2008.

While the decline was more than had been expected, consumer spending was up by 2.2 percent in the quarter.

US government spending dropped 3.9 percent in the first quarter, with defense spending and spending by state and local governments down during the most recent quarter.

At just past 11 a.m. in New York, the dollar traded at $1.3268 to the euro while the yen traded at ¥96.96 to the US dollar and at ¥128.6453 to the euro.

The pound was stronger on positive quarterly reports as the pound traded at 89.84p to the euro while it took $1.4769 to buy a pound and the yen traded at ¥143.1989 to the pound.

The Mexican peso strengthened to 13.695 pesos to the dollar on hopes that damage to the Mexican economy due to the swine flu outbreak will be limited.

Story link: Yen, USD weaken on US GDP report