Dollar strengthens on economic growth

Story link: Dollar strengthens on economic growth

The US dollar strengthened Thursday after the Commerce Department reported that the US economy grew at an annual pace of 0.9 percent in the first quarter of the year, better than the earlier estimate of 0.6 percent growth.

At just past noon in New York, the dollar traded at $1.5508 to the euro while it took ¥105.57 to buy a greenback.

Meanwhile, the Canadian dollar gained on its US counterpart on a report that exports, mostly of commodities, exceeded imports into the country by C$5.56 billion ($5.65 billion) in the first quarter.

The loonie most recently traded at 98.75 cents Canadian to the US dollar.

The Australian and New Zealand dollar were both higher in relation to the yen on in increase in carry trades, in which investors finance purchases of higher-yielding currencies such as the Aussie and the kiwi with lower-yielding currencies like the yen.

In midday trade in New York, the Australian dollar was worth ¥100.7719 while it took ¥82.11 to buy a New Zealand dollar.