Dollar dips on consumer spending, eurozone inflation
April 30th, 2011 - 2:55 am ICT by IANSNew York, April 30 (IANS) The US dollar fell against major currencies in late New York trading Friday as US consumer spending rose in March and inflation in the eurozone climbed in April, Xinhua reported.
After the US Federal Reserve announced its decision to maintain the ultra-loose monetary policy for an extended period of time, the dollar kept falling as investors believed the Fed would not raise the interest rate soon.
The US Commerce Department said Friday that both consumer income and spending rose in March. The consumer income rose 0.5 percent while consumer spending increased 0.6 percent, mainly driven by surging prices of food and gasoline, after an upwardly revised 0.9-percent advance in February.
Meanwhile, inflation in the eurozone rose to 2.8 percent in April, the highest level since last October, up from 2.7 percent in March.
The surging inflation raised investors’ concern on a further interest rate hike by the European Central Bank.
The euro rose to near 1.484 against the greenback in late trading session.
In late Friday trading, the dollar bought 81.10 yen, comparing with 81.57 late Thursday, and the euro rose to $1.4839 from 1.4821.
The British pound also rose to $1.6711 from 1.6643. The dollar fell from 0.8732 to 0.8639 against the Swiss franc, and also fell to 0.9460 Canadian dollars from 0.9512.
- US stocks stay low for straight day - Dec 15, 2011
- Oil inches up on positive data - Mar 31, 2012
- South Korea's consumer confidence rises - Nov 24, 2011
- US stocks mixed as investors await Greek deal - Feb 18, 2012
- US stocks open mixed amid high oil prices - Mar 03, 2012
- Wall Street edges higher ahead of new season (Lead) - Jan 10, 2012
- US stocks close mixed - Mar 31, 2012
- Wall Street ends worst quarter - Oct 01, 2011
- China farm produce prices fall - Apr 11, 2012
- Sensex tanks 298 points, metal, auto stocks fall (Lead) - May 16, 2012
- Sensex drops 140 points on weak rupee, global worries (Weekly market review) - May 19, 2012
- Wall Street tumbles on European concerns - Sep 29, 2011
- US consumer prices rise - Mar 17, 2012
- South Korea's consumer price growth hits 14-month low - Mar 02, 2012
- US stocks drop on Greece worries - Feb 11, 2012
Tags: british pound, canadian dollars, consumer spending, currencies, dollar dips, federal reserve, gasoline, greenback, inflation, interest rate hike, investors, monetary policy, period of time, swiss franc, trading session, us commerce department, us federal reserve, xinhua, yen