Conference Board index helps USD

Story link: Conference Board index helps USD

The US dollar strengthened in relation to the euro and the yen Monday, overcoming earlier weakness stemming from worries about US consumer confidence.

Gains for the greenback came on strength in global equities markets and on a gain in leading US economic indicators after the Conference Board’s index of leading indicators added 0.1 percent in April to 102.

The gain came against an expectation that the index would hold steady and was the second month in a row of gains after 5 straight months of declines.

At just before 11 a.m. in New York, the dollar traded at $1.5514 to the euro while it took ¥104.4950 to buy a dollar.

The Icelandic krona continued its gains against the euro and the dollar on the strength of last week’s loan from three other nations in the region, which will allow Iceland to exchange krona for euros in an attempt to support the Icelandic currency after banks there ran into trouble financing debt as a consequence of the credit crisis.

In late morning trade in New York, it took kr73.715 to buy a dollar and kr114.37 to buy a euro.

The Australian dollar was stronger as prices for raw materials, exports of which make up 17 percent of the Australian economy, continued to rise.

An Australian dollar was worth 95.20 US cents in New York trade, while the New Zealand dollar weakened to 77.35 cents US on continuing concerns that the downturn in the nation’s economy will lead to cuts in interest rates there.