Dollar weaker versus euro, yen

Dollar weaker versus euro, yen

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The US dollar weakened versus the yen and the euro after mortgage company Fannie Mae (NYSE: FNM) announced that it lost $2.19 billion in the first quarter and said that it expects losses next year to top this year’s.

The company also said it will slash its dividend, the second such announcement since December, and that it will raise $6 billion in new capital.

In late morning trade in New York, the dollar traded at ¥104.4250 while it took $1.5558 to buy a euro.

The shared currency was helped by new data showing that producer prices in nations using the euro were up 5.7 percent in March, a gain in inflation which will likely help persuade the European Central Bank to hold Eurozone interest rates at their present level.

The Swiss franc, meanwhile, strengthened in relation to the Brazilian real, the Australian dollar, and the British pound on speculation that investors will withdraw from risky investments in higher-yielding currencies.

The Swiss currency traded at R$1.5901 to the franc at around 11:30 a.m. in New York, while at the same time it was at SFr2.0684 to the pound and a franc was worth A$1.0066.

Otherwise, the Australian dollar as well as the New Zealand dollar were both stronger versus their US counterpart on interest rate speculation.

The kiwi strengthened on speculation that interest rates there will remain at present levels for most of the year, while the Aussie gained after the governor of the Reserve Bank of Australia said that interest rates there might have to be raised if economic growth and inflation don’t slow.

At late morning in New York, the Australian dollar was trading at 94.91 cents US while the New Zealand dollar was at 79.16 cents US.