The greenback traded near the lowest levels in more than two weeks against the euro on speculation an industry report on Friday will signal the worst housing slump in a quarter century thus weighing on the U.S. economy. The currency was also close to a one-week low versus the pound before a report May 23 that economists say will show existing home sales fell for a second month. 'Negative data on the housing market is likely to pull the dollar lower,' said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. 'Sentiment will remain weak as there are ample reasons to believe the U.S. economy will slow.'
The dollar is currently trading at $1.5578 per euro at 7:35 am, GMT from $1.5577 late in New York on May the 16th, when it fell to $1.5601, the lowest since May 1. Against the pound, the dollar is currently trading at $1.9558 from $1.9571 at the end of last week when it reached a one-week low of $1.9598. The U.S. currency will currently buy 104.14 yen from 104.04. The euro is at 162.24 yen from 162.27. The dollar may fall to $1.5650 per euro and 103 yen this week, Soma said.
Asking prices for property in England and Wales hit a record high in May and house price inflation accelerated as a survey from property website Rightmove showed, despite expectations for a much weaker housing market this year. Economists are predicting falls in house prices of about 10 percent this year and Bank of England policymaker David Blanchflower has warned prices could dive by about one-third unless aggressive, immediate action is taken. At the same time, interest rates are unlikely to come down fast given worries over inflation after a decade in which house prices nearly trebled. As growth slows and inflation rises, the pound has suffered from expectations of economic misery ahead, falling to three-month lows versus the dollar last week and hovering near record lows against the euro.
The dollar is currently trading at $1.5578 per euro at 7:35 am, GMT from $1.5577 late in New York on May the 16th, when it fell to $1.5601, the lowest since May 1. Against the pound, the dollar is currently trading at $1.9558 from $1.9571 at the end of last week when it reached a one-week low of $1.9598. The U.S. currency will currently buy 104.14 yen from 104.04. The euro is at 162.24 yen from 162.27. The dollar may fall to $1.5650 per euro and 103 yen this week, Soma said.
Asking prices for property in England and Wales hit a record high in May and house price inflation accelerated as a survey from property website Rightmove showed, despite expectations for a much weaker housing market this year. Economists are predicting falls in house prices of about 10 percent this year and Bank of England policymaker David Blanchflower has warned prices could dive by about one-third unless aggressive, immediate action is taken. At the same time, interest rates are unlikely to come down fast given worries over inflation after a decade in which house prices nearly trebled. As growth slows and inflation rises, the pound has suffered from expectations of economic misery ahead, falling to three-month lows versus the dollar last week and hovering near record lows against the euro.