Dollar Attempts to Maintain Rally, Fails
The US dollar was trying to rally on speculations about possible quantitative easing tampering, but failed to do so against such currencies as the euro and the Japanese yen. The greenback managed to keep gains versus the Great Britain pound.
US macroeconomic data was good today, adding to chances of QE tampering in September. The Richmond manufacturing index unexpectedly returned into the positive territory this month, jumping from -11 to 14. The Conference Board consumer confidence gauge improved from 81.0 in July to 81.5 in August instead of falling as analysts have predicted. The housing data was positive too.
The signs of growth supported the US currency initially, but it was not able to maintain rally. Fears that the United States will be involved in a war drove investors away from the greenback.
EUR/USD dropped from 1.3367 to 1.3321 intraday, but rebounded to 1.3391 as of 21:41 GMT today. USD/JPY sank from 98.52 to 97.02. GBP/USD was down from 1.5574 to 1.5546, trimming the drop to 1.5481.
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Earlier News About the US Dollar:
- Dollar Fluctuates as Speculations About QE Tampering Continue (2013-08-26)
- Another Difficult Week for Dollar Traders Ahead? Very Likely (2013-08-26)
- Another Volatile Week for US Dollar Ended (2013-08-24)
- Contradictory Data Results in Mixed Performance of Dollar (2013-08-22)
- US Dollar After Fed Minutes: Broadly Stronger (2013-08-21)