Tuesday, 1 Dec 2009

Dollar Declines on Positive Economic Data

The Dollar fell against most major currencies today as positive economic data and reduced concerns over Dubai World's debt boosted demand for higher-yielding assets. The Dollar weakened 0.7% to $1.5108 per EUR, from $1.5005 yesterday. The USD climbed 0.2% to 86.62 yen today, from 86.41. Japan's currency weakened 0.9% to 130.86 per EUR, from 129.64. The Yen fell against all of its 16 most-traded peers after the overnight meeting of the Bank of Japan in response to government criticism that it wasn't doing enough to stop the Yen's advance and maintain the economic recovery.

Gold for immediate delivery reached an all-time high of $1,201.63. Crude oil for January delivery gained 2.1% to $78.88 a barrel.

The Institute for Supply Management's November manufacturing index came in at 53.6. The result fell short of economists' expectations for a reading of 55.0, and was less than the 55.7 reported in October. Still, the index clocked in above the 50 threshold, indicating manufacturing activity is expanding. Pending sales of existing U.S. homes gained 3.7% in October.