Housing figures keep dollar weak
Housing figures keep dollar weak
Housing figures released yesterday paired with huge losses incurred in the third quarter by banking giant Merrill Lynch pushed the dollar down against the major currencies today.The dollar traded at $1.4277, down 0.1 per cent just scraping clear of Monday's record low of $1.4350.
The weak
US housing figures and poor Merrill Lynch results together painted a less than positive outlook for the US economy sparking suggestions among analysts that the Federal Reserve will cut the base rate from its current position of 4.75 per cent.
Russell Jones, head of fixed income and currencies global research at RBC Capital Markets, told Forex: "The dollar remains under pretty broad-based pressure...It's increasingly likely that the Fed will move next week, there is growing speculation that it could even be 50 basis points, and the fallout in the financial sector seems to be quite grim."
Meanwhile the pound eased off slightly against the dollar to $2.0480 and was down 0.2 per cent against the euro £0.6969.
This article was brought to you by holidaylettings.co.uk, the UK's No.1 holiday home website.
25 October 2007
Print this article
