Dollar weakens; pound up on producer prices

Dollar weakens; pound up on producer prices

Story link: Dollar weakens; pound up on producer prices

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The US dollar was weaker versus the euro after earlier gains Monday while the pound saw gains on a report of higher producer prices in the UK.

The dollars declines came after a G-7 report that warned that fluctuations in exchange rates could hurt the global economy but did not mention any initiatives to support the dollar.

At nearly 12:30 p.m. in New York, the dollar traded at $1.5832 to the euro.

Meanwhile, the pound saw gains after it was reported that producer prices in the UK were up 6.2 percent in March over the same month last year.

This inflation reduced expectations of how much the Bank of England will cut interest rates during the year.

In early afternoon trade in New York, the pound traded at 79.89 to the euro and at 50.46p to the US dollar.

The South African rand was lower versus the US dollar as investors were less interested in buying high-yield currencies after equities markets and precious metals prices declined.

South Africa is a major producer of both gold and platinum.

The rand was at $7.8825 to the greenback and at R12.473 to the euro in New York trade.

The Swedish krona gained on the dollar and the euro on a report that inflation was at a 5 year-high in March as consumer prices gained 2.3 percent in March.

At early afternoon in New York, the krona traded at kr5.9394 to the US dollar and at kr9.3988 to the euro.