US dollar weakens on warnings

Story link: US dollar weakens on warnings

The US dollar weakened Tuesday, with the euro hitting a new high against the greenback on warnings from the retail sector and homebuilders.

The warnings emphasized June data showing that consumer confidence is declining in the United States.

Some analysts blamed the erosion of confidence on higher oil prices.

In midday trade in New York, sterling had added 0.5 percent to $2.0240 versus the US dollar, a bit down from a 26-year high, while the euro had gained 0.7 percent to $1.3721 in relation to the dollar.

At the same time, the yen was 1 percent higher to ¥122.07 against the US currency.

The yen was also in a better position versus the Australia and New Zealand dollars as the Australian dollar dropped 0.8 percent to ¥105.25 versus the yen and the kiwi fell 1 percent to ¥95.18.

The decline by the New Zealand dollar came as business confidence dropped from minus 15 in the first quarter to minus 37 in the second quarter after interest rates there went up to 8 percent in June.

One of the few currencies to lose ground to the US dollar was the Canadian dollar, which declined 0.3 percent to C$1.0514 to the dollar after the Bank of Canada raised interest rates to 4.5 percent.