Australian dollar loses 1 percent against US dollar, yen

Australian dollar loses 1 percent against US dollar, yen

Story link: Australian dollar loses 1 percent against US dollar, yen

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The Australian dollar saw declines on Tuesday after producer and consumer price inflation data came in below what had been anticipated by analysts. After the report on producer price inflation on Monday, Tuesday’s figures on consumer price inflation showed that it had gone up by only 0.1 percent in the first quarter of 2007. Consumer inflation had been expected to be up by 0.6 percent in the quarter. The Australian currency fell 1 percent in relation to both the US dollar and the yen, to $0.8250 and ¥97.80 respectively.

Elsewhere, sterling was down 0.2 percent to ¥236.85 versus the yen, while it lost the same percentage to the US dollar, to $1.9980 in mid-morning trade in London. The US dollar was close to steady against both the yen and the euro before existing home sales figures were released, trading at ¥118.60 in relation to the yen and at $1.3560 versus the euro. By late afternoon in New York, after the news that existing home sales had dropped by 8.4 percent in March, the dollar was at ¥118.57 against the yen and at $1.3631 in relation to the euro.