USD weaker versus euro, Australia and New Zealand dollars

Story link: USD weaker versus euro, Australia and New Zealand dollars

The US dollar declined on Monday in relation to the euro and the Australia and New Zealand dollars as markets in the US observed the Memorial Day holiday.

The greenback was hurt by anticipation of a report due Tuesday that is expected to show that home prices in 20 US metropolitan areas were down 14.2 percent in March from the same time last year.

That decline, coupled with falling consumer confidence, have lessened the chance that the Federal Reserve will raise interest rates this year.

Meanwhile, the euro was helped by higher consumer prices in the Eurozone, which gained 3.5 percent in May, and ahead of a report due Friday that is expected to show that unemployment declined this month in Germany, all of which could mean that the European Central Bank will hold interest rates steady.

At last report, the dollar was trading at $1.5767 to the euro while it took 95.95 cents US to buy an Australian dollar and 78.73 cents US to buy a New Zealand dollar.

Rising prices for oil and gold helped the Aussie and the kiwi as the price gains are expected to help out commodities exporters, while the Aussie was also aided by speculation that the Reserve Bank of Australia will raise interest rates this year after minutes from the May 6 meeting of the Bank showed that a rate hike was considered then.

The Australia and New Zealand currencies also advanced in relation to the yen, to ¥99.2746 and ¥81.458 respectively, while the yen also declined to ¥103.4650 to the US dollar and to ¥163.1333 to the euro.

The South African rand weakened after an Indian mobile phone operator backed out of a deal with a South African company and on expectations that a report due Tuesday will show that the nation’s economic growth is slowing.

The rand traded at R7.6955 to the US dollar and at R12.130 to the euro.