Wednesday, 28 Jul 2010

Dollar Slips vs. Yen on Unexpected Drop in Durable Goods

The U.S dollar declined in afternoon trading from the highest level in almost 2 weeks versus the Japanese yen as orders for U.S. durable goods unexpectedly fell last month. The Commerce Department said orders for Durable Goods fell 1% in June, defying expectations for a 1% rise. The Dollar decreased 0.3% to 87.68 yen from 87.90 yesterday, after touching 88.12, the highest level since July 15.

The U.S. dollar was little changed versus the EUR as investors awaited news that could push the single currency out of a recent range after it topped $1.30 for the 5th time this month on Wednesday. The Federal Reserve is due to release its report on regional economic conditions, known as the Beige Book, later in the session. Analysts said the Fed is likely to report softer economic conditions, which may add to investors' risk aversion and hurt the single currency.