Dollar lacks direction after mixed US data
US Currency. AP FILE PHOTO
NEW YORK – The dollar Wednesday fell against the euro, but rose against the Japanese yen following mixed US economic data.
Around 2200 GMT, the euro traded at $1.3576, up from $1.3569 Tuesday.
The dollar bought 102.16 yen, up from 101.31.
The euro also advanced against the yen, trading at 138.71 from 137.46.
The dollar’s mixed movements against major currencies came after a day of varied economic data. While durable goods orders disappointed, analysts were cheered by better data on jobless claims and consumer confidence.
Uniformly better US data would boost the dollar, while uniformly negative data would depress it, said BK Asset Management analyst Kathy Lien.
“Unfortunately, the unevenness of US reports provides no clarity for the Federal Reserve and hence no directionality for currencies,” Lien said.
The rise in the euro came after German Chancellor Angela Merkel agreed to form a coalition government with campaign rivals, the Social Democrats, ending two months of uncertainty.
The euro was also boosted by better data on German consumer confidence, analysts said.
Still, Western Union Business Solutions senior market analyst Joe Manimbo warned that the euro “may be skating on relatively thin ice” with major data releases Friday on inflation and unemployment.
The yen fell against major currencies following comments from a Bank of Japan official suggesting there was a potential for more easing.
BOJ board member Sayuri Shirai said the central bank “should not hesitate” to take additional easing steps if needed, The Wall Street Journal reported.
Among other currencies, the British pound rose to $1.6285 from $1.6216.
The dollar advanced to 0.9074 Swiss franc from 0.9069.
