Existing home sales hurt US dollar

Story link: Existing home sales hurt US dollar

The US dollar weakened versus the euro, the yen, and the Swiss franc on Friday, hurt by continuing troubles in the housing market and by gains in oil prices.

The National Association of Realtors reported that sales of previously existing homes fell 1 percent in April, leaving inventories at a 23-year high.

At around noon in New York, the dollar was at $1.5781 to the euro, while it took ¥103.2250 or SFr1.0236 to buy a dollar.

The yen was stronger against most currencies, including the euro and the pound, on declining equities that sent investors away from risky investments financed with low-yielding currencies.

The yen traded at ¥162.9465 to the euro and at ¥204.6627 to the pound in midday trade in New York.

The South African rand was weaker on record oil prices and on civil unrest as anti-immigration riots across the country made investors think twice about putting money into assets there.

South Africa’s president authorized the use of troops to stop the riots, which have killed at least 42 people since May 11.

The rand traded at R7.6625 to the greenback just before noon in New York.

High oil prices have created worries about the current-account deficit, considering that South Africa imports more than two-thirds of the oil it uses.

The Australian dollar gained on the US dollar on the possibility that interest rates there will stay high on gains in commodities prices.

The Aussie was worth 96.07 cents US at nearly noon in New York.